People weren’t as optimistic last month about economic recovery as they were in June, according to the Discover U.S. Spending Monitor. But the more they made, the greater their confidence level. Only 21% of those who make less than $40,000 said they saw improvement. That’s down 10 points from June.
Among people who make between $40,000 and $75,000 per year, 35% said the economy was improving – down from June, but only by five points. Respondents who make over $75,000 a year have a considerably brighter economic outlook – 50% of them rated the economy as on the upswing, just a two-point dip from June.
The monthly report includes responses from 8,200 individuals about their spending intentions and economic confidence. In the June report, there was a surge of good feeling about the economy.
Personal financial pictures dim slightly
Those surveyed last month felt a little less favorable about their own finances though, regardless of their income levels. The number of respondents who said their personal finances was good or excellent declined from 36% in June to 33% in July. People who said their finances were getting better dipped from 27% in June to 24% in July.
Discretionary spending decreases
Nearly a third of the people that took part (30%) said they expect to spend more overall, which is on track with the month before. But when it came to discretionary purchases, only 9% said they would increase spending – a five point drop from June.
Thirty-nine percent of people said they plan to spend more on household expenses, on par with last month. Only 16% plan to spend more on home improvements, and 15% say they’ll increase spending on major personal purchases.
When it comes to savings and investing, 42% said they don’t expect to increase or decrease contributions, compared to 39% in June. Only 9% of respondents say they are increasing their savings or investment strategy.