Consumer sentiment declined in May, with 43.7% of Americans confident in the economy, down nearly 3 points from April and 2 points below the 13-month average. As confidence decreased, consumers became more practical in purchases, with 39.6% focusing only on needs. While savings sentiment has improved since the recession across all incomes, over 1/3 of Americans still feel financially insecure, reaching nearly 50% for lower-income households.

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May 2016
Consumer Snapshot

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sentiment strategy
Disclaimer: Prosper Business Development and its affiliated companies (“Prosper”) make no warranties, either expressed or implied, concerning: data gathered or
obtained from any source; the present or future methodology employed in producing the statistics; or the data and estimates represent only the opinion of
Prosper and reliance thereon and use thereof shall be at the user’s own risk.
May 2016
consumer
finances

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sentiment
consumer sentiment
sentiment continues to wilt in May, with a
current 43.7% who are confident/very
confident in the economy, down nearly 3
points from April
very confident/confident in chances for a strong economy
{adults 18+}
Source: Prosper Insights & Analytics
consumer confidence faces its second
consecutive month of decline, residing 2 points
below the 13 month average (45.8%)
43.7%
38%
40%
42%
44%
46%
48%
50%
52%

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sentiment
very confident/confident in chances for a strong economy
{adults 18+}
Source: Prosper Insights & Analytics
historical perspective
while confidence is in line with pre-recession
May-07 (44.7%), this month’s reading represents a
steep, 5 point decline from a year ago
historically, confidence has increased each
May since 2012, so the current reading is a step
back for sentiment
44.7%
48.6%
43.7%
0%
10%
20%
30%
40%
50%
60% consumer sentiment
sentiment continues to wilt in May, with a
current 43.7% who are confident/very
confident in the economy, down nearly 3
points from April
consumer confidence faces its second
consecutive month of decline, residing 2 points
below the 13 month average (45.8%)

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strategy
practicality & focus on needs
{adults 18+}
practical purchases
with confidence in decline, pragmatic
purchase plans continue an upward trend
focus on needs
shoppers’ focus on just what they need also rises –
nearly 3 points – from April
Source: Prosper Insights & Analytics
in May, 39.6% indicate that they’ve become
more practical with purchasing, up more than
two points from April, and above the 13 month
average (37.4%)
44.3% indicate they are zeroing in on just what
they need when at the store, also tracking
higher than the 13 month average (43.0%)
37.5%
39.6%
44.5%
44.3%
30%
32%
34%
36%
38%
40%
42%
44%
46%
48%
I have become more practical and realistic in my
purchases
I focus more on what I NEED rather than what I WANT

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consumer finances
focus on savings
Source: Prosper Insights & Analytics
saving enough for future needs
{by household income}
generally speaking, upper, middle, and lower
income consumer groups feel at least a little bit
better about their savings positions since the
recession
0%
10%
20%
30%
40%
50%
60%
70%
Lower Income HH Middle Income HH
Upper Income HH
Key: Upper Income HH = $75K+; Middle Income HH = $35K-$74,999, Lower Income HH = <$35K
since May-09, savings sentiment has improved
the most among Middle (+85%) and Upper
(+84%) Income Households, while Lower Incomes
(+59%) have lagged

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consumer finances
Source: Prosper Insights & Analytics Key: Upper Income HH = $75K+; Middle Income HH = $35K-$74,999, Lower Income HH = <$35K
how do you feel about your overall financial security?
{adults 18+, household income}
26.1% 29.3% 25.5% 21.2%
34.6%
48.7%
36.1%
20.1%
39.3%
22.0%
38.4%
58.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Adults 18+ Lower
Income HH
Middle
Income HH
Upper
Income HH
Undecided
Very/Somewhat Insecure
Very/Somewhat Stable
savings train set to continue
with decreasing sentiment and increasing
practicality, look for cautious spending plans to
continue
despite consumers generally feeling better
about their savings, more than one in three
continues to feel financially vulnerable, rising to
nearly half of lower income households
focus on savings
generally speaking, upper, middle, and lower
income consumer groups feel at least a little bit
better about their savings positions since the
recession
since May-09, savings sentiment has improved
the most among Middle (+85%) and Upper
(+84%) Income Households, while Lower Incomes
(+59%) have lagged

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Pam Goodfellow
Consumer Insights Director
Prosper Insights & Analytics™
pam@goProsper.com
ProsperDiscovery.com
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