More Than Half of Investors Say Average Consumer Is Faring Worse Than Last Year

Over the holiday week, we asked AAII members what their favorite thing to eat on Thanksgiving was. Turkey was the most popular, followed by stuffing and gravy.

For this week’s Sentiment Survey special question, we asked AAII members how they think the average consumer is faring relative to a year ago. More than half of respondents (56%) say that the average consumer is faring worse relative to a year ago due to coronavirus-related economic slowdown, unemployment and declines in spending. This compares to about 30% of respondents who say that while the average consumer is doing fairly well if they are employed, others who have lost their job are doing substantially worse. In addition, about 14% of respondents say that the average consumer is faring about the same compared to last year.

Here is a sampling of the responses:

• “There are extremes: If you are still working, everything is fine—financially speaking. If you are unemployed, you are facing financial destruction on January 1. All of the government support programs expire, and it doesn’t look likely that the lame duck Congress will do anything before the inauguration.”
• “Very well if you’re working; however, a lot of people are still out of work or not working full time. The big hurdle is to get travel, leisure and restaurants back into production. A lot of people have been left out of recovery.”
• “On average, things are worse now than a year ago. With some people unemployed and others on reduced work hours, they are a drag on the economy, in spite of the record stock market. Wealthy and retired people are better off now, but the average consumer is worse.”
• “There is no such thing as ‘the average consumer.’ It all depends on your job and income status. Those who have been laid off due to the coronavirus will probably cut spending as much as possible until they see the recovery due to vaccinations being given. I think that when vaccinations are widely available, there will be a surge in pent-up spending not only for consumer goods but all services and travel.”
• “Likely the average consumer suffered job/income issues and is worse off today than a year ago. For retirees (like me), the impact of the coronavirus has been minimal, and the stock market rise has been very favorable.”

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