While many consumers perceive something amiss about the US economy, there are differences by race/ethnicity and income in perceptions about the state of the economy, fear of job loss, and the degree to which spending should be curbed.

Insights for What’s Ahead

• Given rising interest rates, elevated inflation, and frequent announcements about layoffs, a combined 72 percent of consumers, regardless of race/ethnicity, generally believe the US economy is in recession or headed toward one within the next six months.
• White (non-Hispanic/non-Latino) and Asian consumers were more likely to say that the economy was already in recession, likely because the industry sectors that are reducing hiring or laying off workers are somewhat more likely to employ higher numbers of White (non-Hispanic/non-Latino) and Asian workers.
• Fifty-two percent of our population said in February that they were worried about losing their jobs in the next six months; those who were most worried were more likely to be White (non-Hispanic/non-Latino) consumers or Latino/Hispanic consumers earning less than $35,000 a year.
• Almost all consumers are cutting back on discretionary spending, especially those earning less than $75,000, with White (non-Hispanic/ non-Latino) and Asian consumers more likely to do so. Consumers are pulling back on necessary purchases to a lesser degree.
• Businesses focused on consumers should stress value and durability, and even promote buying in bulk to save consumers money.