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Survey Results: The Consumer Sentiment Study

July 27, 2020

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The Consumer Sentiment Study is a quarterly survey from Marcus by Goldman Sachs®, which aims to track Americans’ perception of current and future financial climates, market conditions and plans for their money. In each installment, Marcus will release new data to provide a window into the pulse of the consumer as it pertains to personal finance and spending behavior over time in the United States.

The Consumer Sentiment Survey was conducted among a nationally representative sample (using U.S. Census data) of 1,501 Americans. The survey was conducted June 22-25, 2020.

This Consumer Sentiment Study was fielded amidst extraordinary circumstances, from the continued spread of COVID-19 to global protests around racial injustice. Further, it was recently confirmed by the National Bureau of Economic Research that the United States officially entered a recession in February of this year as the pandemic crippled the economy. Our study tracks the effects of these historic events on consumer behavior.

At Marcus, we remain committed to listening and learning from consumers. We hope you will find the results interesting and informative.

We are interested in how people are getting along financially these days. Would you say that you are better off or worse off financially than you were 6 months ago?

More than three-quarters of Americans (77%) feel they are the same or worse off financially than they were 6 months ago.

Now looking ahead – do you think that 6 months from now you will be better off financially, or worse off, or just about the same as now?

Almost a third of Americans (32%) think that in 6 months from now they will be better off financially than they are now.

How long do you think it will take for the U.S. economy to make a full recovery and return to pre-COVID-19 levels of activity?

One in four Americans (25%) think that it will take the U.S. economy 6-12 months to make a full recovery and return to pre-COVID-19 levels of activity.

How long do you think it will be before you feel comfortable returning to the following activities?

Americans think it will take less than a year before they feel comfortable returning to certain activities such as: shopping at brick-and-mortar store locations (77%), followed by dining out at restaurants (74%) and going to a live sporting event or concert with a large crowd (51%).

Compared to your pre-COVID behavior, how do you anticipate that your spending will change in the following areas in the coming months?

Compared to their pre-COVID behavior, Americans anticipate spending the same or more in areas such as shopping for clothes, shoes, jewelry, or other similar items (64%), followed by dining out at restaurants (53%) and domestic travel (52%).

Quarterly Consumer Sentiment Study Overview

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The Consumer Sentiment Survey was conducted by Marcus by Goldman Sachs in June 2020 among 1,501 Americans.

View results from survey conducted in March 2020

The Consumer Sentiment Survey was conducted by Marcus by Goldman Sachs in March 2020, among 2,503 Americans.

Would you say that you are better off or worse off financially than you were 6 months ago? What about looking ahead 6 months from now? What about the business conditions in the country as a whole?

42% of Americans feel they are the same financially now than they were 6 months ago.
Over a third (34%) of Americans feel they are worse off financially now than they were 6 months ago.
22% of Americans feel they are better off financially now than they were 6 months ago.
Over three-quarters (76%) of Americans feel they are the same or worse off financially now than they were 6 months ago.
64% of Americans feel they are the same or better off financially now than they were 6 months ago.
Over a third (34%) of Americans think that 6 months from now they will be better off financially.
Over a third (35%) of Americans think that 6 months from now they will be just about the same financially.
More than one in five Americans (21%) think that 6 months from now they will be worse off financially.
Nearly half (46%) of Americans think that the next 6 months will have bad financial business conditions.

Which of the following market events or business conditions are you most concerned about?

Over half of Americans (57%) are most concerned about their health, followed by an economic recession (52%) and the job market (41%).
Only 27% of Americans are most concerned about the presidential election.

No one can say for sure, but what do you think will happen to the stock market during the next 6 months? What do you think will happen to interest rates for borrowing money during the next 6 months?

39% of Americans think the stock market will go down.
28% of Americans think the stock market will go up.
31% of Americans think interest rates for borrowing money will go up.
57% of Americans think interest rates for borrowing money will either go up or stay the same.
27% of Americans think interest rates for borrowing money will go down.
53% of Americans think interest rates for borrowing money will either go down or stay the same.

Compared to your current behavior, do you think that during the next 6 months you will…

44% of Americans think they will spend less.
39% of Americans think they will save more.
39% of Americans think they will invest less
17% of Americans think they will invest more.

You said that during the next 6 months, you think you will spend more. Where do you believe that you will be spending more money?

32% believe they will spend more money on healthcare, followed by their automobile (27%).
22% believe they will spend more on luxury goods, followed by vacation (21%).

You said that during the next 6 months, you think you will spend less. Why do you believe that you will be spending less money?

43% believe they could be making less money and need to cut back.
37% believe they will be on a budget to scale back from recent purchases.
37% think prices or the cost of living will increase so they will end up buying fewer things.

During the next 6 months, do you think you will start looking for new financial accounts?

21% of Americans think they will start looking for new financial accounts during the next 6 months.
56% of Americans do not think they will start looking for new financial accounts during the next 6 months.

What types of financial accounts/investments would you consider opening? What factors are important to you?

Over a third (34%) would consider opening a high-yield savings account at an online bank and 28% would consider opening a CD.
Of those who think they will start looking for new financial accounts during the next 6 months, when considering opening a new financial account, 46% say that an important factor is quick access to funds, followed by the rate of return (43%) and the reputation of the financial institution (43%).

Of those who will look to open a high-yield savings account at an online bank in the next 6 months, why would you consider opening high-yield savings accounts at an online-only bank?

61% would do so because of the higher interest rate that online banks offer, followed by 42% wanting to safeguard their money in an FDIC-insured asset and 41% ensuring liquid and quick access to cash.

Of those who will look to open a CD in the next 6 months, why would you consider opening Certificates of Deposit (CDs)?

44% would to safeguard their money in an FDIC-insured asset, 42% think it’s a good for the value of their long-term investments and 39% prefer a guaranteed rate of return.

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.

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