Americans optimistic about economy despite looming debt ceiling threat – Forbes Advisor
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Amid tense discussions among lawmakers that could have serious economic consequences, Americans remain divided over the country’s prospects for economic recovery.
This week, 54% believed the economy would recover quickly as pandemic restrictions were relaxed, up 3 points from last week. However, with the looming debt ceiling crisis, the optimism of Americans may be misplaced.
The investigation, led by Ipsos, measures consumer sentiment over time.
“There is a growing desire among the American public to prioritize reopening the economy, even if things are not fully contained,” said Mallory Newall, vice president of Ipsos Public Affairs.
Sixty percent said it was time to restart the economy and allow businesses to reopen even if the virus is not fully contained. This is an increase of 5 points from last week.
Signs of a full return to everyday life – pandemic or not – continue to appear. Broadway shows reopened at full capacity last week. And the White House announced Monday that non-nationals can fly to the United States from November, provided they show proof of vaccination and a negative Covid-19 test.
Americans worry about shopping as the holiday season approaches
While Americans feel better about the economy as a whole, they remain concerned about their own purchasing power. Forty-eight percent of respondents said they were more comfortable making a major purchase, such as a house or car, than six months ago, down 1 point from the week last.
Meanwhile, 52% say they are more comfortable doing other household purchases than they were six months ago, up 2 points from last week.
Concerns about the long-term economic recovery could lead some Americans to adjust their shopping habits beyond the holiday season.
Persistent supply chain issues may push some shoppers to shop for the holidays earlier than ever, as retailers warn they may have a limited stock of popular items this season.
And the Washington feuds could soon have a very real impact on consumers. Treasury Secretary Janet Yellen this week warned of the financial impact on ordinary Americans if Congress does not increase the federal debt ceiling; that is, making purchases on credit could become more expensive for consumers. The stock market could also be negatively affected by a default, or even the threat of a.
While Congress has never defaulted on its debt before, lawmakers face a September 30 deadline to approve a federal budget and prevent a government shutdown, and the Treasury may run out of money at some point. given in October if the debt limit is not raised.
This is in addition to the ongoing negotiations to pass a pair of bills focused on infrastructure and social programs.
Some consumers are also questioning the status of their third monthly child tax credit payment. Households that have elected to receive their tax credit in monthly installments of up to $ 300 per child should receive six installments between July and December. But the IRS announced this week that it is aware that some recipients are experiencing late payments. They have yet to explain why or offer advice to anxious recipients.
Methodology of the survey: Ipsos, which surveyed 939 respondents online on September 21-22, 2021, provided the results exclusively to Forbes Advisor. The survey is conducted weekly to track consumer sentiment over time, using a series of 11 questions to determine whether consumers feel positive or negative about the current state of the economy and its direction. future.