Declining consumer outlook in the U.S., as earnings for individuals at the lower and higher ends of the income spectrum indicate pessimistic trends – findings from the Bain/Dynata Consumer Health Indexes
In a concerning development, the latest results of the Bain & Company/Dynata Consumer Health Indexes (CHI) for September indicate a deterioration in the outlook for American consumers.
According to the report, the CHI headline outlook gauge for consumer prospects across all US income groups has fallen further this month, dropping into negative territory with a reading of 98.8. This marks the first time since the onset of the pandemic that the index has dipped below the 100-mark, signalling a pessimistic outlook for the nation's consumers.
The outlook gauge for lower-income Americans (earning below $50,000 per year) has also seen a fourth consecutive month of decline, dropping to 94.7. This continued deterioration adds to mounting evidence from the CHI data of weakness in the job market impacting this group.
In a contrasting development, Bain & Company and Dynata forecast that American consumers with an annual income of over $100,000 expect a positive outlook in the coming months, showing increased confidence in spending and economic conditions. However, this optimism has not been reflected in the CHI reading for spending intent for upper-income households, which tumbled by 5.4 points this month.
The momentum of the CHI's gauge of spending intentions for upper-income households has also reversed as the economic mood darkens among these better-off Americans. Meanwhile, spending intentions among the lower-income group are also falling, with the CHI gauge of these dropping 1.8 points.
Dynata, the world's largest first-party data company for insights, activation, and measurement, with a reach of 70 million consumers and business professionals globally, provides the data for the CHI report. The company serves more than 6,000 market research, media and advertising agencies, publishers, consulting and investment firms, and corporate customers in North America, South America, Europe, and Asia-Pacific.
For more information about Dynata or to arrange an interview, please contact Gary Duncan of London or Amanda Folsom of Boston, who are the media contacts for this report. The full report (PDF) can be found by clicking here or by contacting the media contacts provided.
Bain & Company, a global consultancy that helps the world's most ambitious change makers define the future, has also invested significantly in pro bono services. Over a 10-year period, the company has invested more than $1 billion in pro bono services, bringing its talent, expertise, and insight to organizations addressing urgent challenges. Bain & Company has also earned a gold rating from EcoVadis, placing it in the top 2% of all companies for environmental, social, and ethical performance.
The CHI report serves as a valuable tool for understanding consumer sentiment and spending patterns in the United States. As the economic landscape continues to evolve, the insights provided by the Bain & Company/Dynata Consumer Health Indexes will undoubtedly remain a crucial resource for businesses, policymakers, and consumers alike.
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