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Financial decision-maker sentiment: US

An ongoing look at how the attitudes of financial decision makers in the US are evolving during the COVID-19 pandemic.

American financial decision makers' expectations for the economy in three months declined slightly in the last two weeks after steadily improving since late March. Almost 60 percent of consumers believe their current financial situation is strong or somewhat strong, and 80 percent expect it to remain the same or improve. One third of households report reduced income and savings, while almost half have reduced spending. Job security concerns continue to steadily improve with 40 percent concerned, down from 50 percent in late March. Majority of consumers feel their bank is performing per expectations and would like them to waive late fees and reduce minimum payments on credit cards. Over 80% of consumers are unsure or optimistic about the future of the economy, and over 60% state that a vaccine developed and distributed would make them more optimistic in a quick recovery.

Bill payment trends in the United States

Over 40 percent of financial decision makers in the US report having skipped or only partially paid a bill over the past month. They reported that they were most likely to skip or partially pay a credit card bill or auto loan. Rent and mortgage payments were the next most likely bills for non-payment. Young people and those making less than $50,000 were the most likely to miss or partially pay one or more bills, with people earning more than $100,000 most likely to skip or partially pay out credit cards. Most consumers who have received or expect to receive a support payment from the government report are intending to use it to pay utilities, followed by credit card. The smallest number of people report intending to use their support payment on auto loan payments.

About the author(s)

Nikki Chemel and John Euart are associates and Jonathan Gordon is a partner, all in McKinsey’s New York office. Resil Das is a specialist in the Gurgaon office, Michael Panek is a specialist in the New York office, and Olivia White is a partner in the San Francisco office.

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