Election day is fast approaching. This year local, state and national leaders are on the ballot, and we may find ourselves reading the polls to guess how votes will trend. One potential indicator for how people will vote is how they view the future of the country. In the graph above, our research shows us that both prime and non-prime consumers have lost faith in the direction of the country since COVID, but non-prime more so. This is a metric we will continue to monitor throughout and after election season.
Even as employment and the economy is trending upwards, consumer sentiment still demonstrates a feeling of uncertainty through the COVID pandemic. While this is an emotional measurement, not objective of financial security, it is important to gauge how consumers are feeling during this time. Consumers feeling financially insecure may signal a risk averse trend to continue. People may take this time to pay down debt and build up savings accounts rather than risk anything during this unprecedented and unsure season. An example of this can be seen in the graphs below.
There is a downward trend of credit card usage. Consumers are paying down their balances and are choosing to no longer use credit cards. This graph could also speak to a lack of access for consumers from credit institutions. This downward trend signals a lack of flexibility from financial institutions for consumers as everyone continues to buckle down to make it through these difficult times.