Economic Confidence on the Rise

In a survey of 1,014 U.S. adults conducted by Harris Poll on behalf of the AICPA, fewer Americans reported putting off major life decisions for financial reasons. The survey found that 35% of Americans reported delaying a major life decision within the last year, down from 51% in 2015.Among the more significant decreases from 2015:

• 13% reported they delayed enrolling in higher education, down from 24%.
• 14% reported they delayed the purchase of a home, down from 22%.
• 10% reported they delayed retirement, down from 18%.
• 7% reported they delayed having children, down from 13%.
• 6% reported they had delayed marriage, down from 12%.

These responses add to the growing list of indicators of a robust economy. Another indicator of the healthy economy is that unemployment rates are lower than they have been in several years. Low unemployment rates mean employers will have to provide incentives in order to recruit and retain employees. This should open the door to spark wage growth, which has stagnated for many years.The news is not all good, however. There are also indicators that economic confidence may be giving way to economic overconfidence. 68% of respondents reported taking steps to improve their financial habits, as compared to 85% in 2015.Among the more significant decreases from 2015:

• 39% reported following a monthly budgeted, down from 58%.
• 36% reported starting or increasing savings, down from 44%.
• 30% reported spending less money on credit cards, down from 50%.

Further, among those respondents that reported they had delayed a life decision for financial reasons, 60% said they did so due to insufficient savings, the same percentage as in 2015. For those struggling to build sufficient savings, now is a great time to revisit your spending and make a plan to save in order to secure your financial future.