The majority of Americans feel the U.S. is either in a recession, or headed towards one, according to a recent Maru Public Opinion survey compiled for Yahoo. A bit more than half of respondents say they are now stricter with their money habits.
The poll of 1,512 people shows 62% feel the country is already in a period of contraction. Another 19% believe the country is headed toward one.
“Based on what they’ve seen, read, heard, or are personally experiencing, two-thirds (62%) of Americans think the country is currently experiencing a recession compared to four in 10 (38%) who don’t think that’s the case,” states John Wright, executive vice president of Maru Public Opinion.
Further, half (53%) of Americans say they have personally set stricter priorities and reduced their spending in the last month, according to the survey.
Those most likely to believe the United States is currently in a recession are most likely to reside in the South (67%) and the Northeast (64%). Women are more likely than men to believe that the United States is already in recessionary times, according to the study.
Those most likely to believe that the United States is not currently in a recession (38%) can be found in the Midwest (44%) and the West (41%).
A recession is defined by two consecutive quarters of negative gross domestic product, or GDP, growth. The country’s GDP unexpectedly contracted at a 1.4% annualized rate in the first quarter of this year.
The GDP reading serves as a backwards-looking overview of the economy, capturing the January-through-March period. As the Federal Reserve continues on a path of tighten monetary policy, economists are forecasting the possibility of a recession ahead.
This week, Tesla's CEO Elon Musk ordered a hiring pause worldwide, citing a "super bad feeling" about the economy. Musk also aims to cut 10% of the electric-vehicle giant’s workforce, according to an email viewed by Reuters. His comments came just days after JPMorgan's CEO Jamie Dimon warned of an economic “hurricane" ahead as the Federal Reserve continues its process of normalizing interest rates.
Ines is a markets reporter covering equities. Follow her on Twitter at @ines_ferre