Facing a conflicting stream of economic news that contains both positive economic indicators and continued uncertainty over the long-term fate of the United States economy, even the world’s leading economists cannot agree on the likelihood of a U.S. recession in the coming months.
Bank customers in the U.S. are less optimistic, with a majority (86%) concerned that a recession will affect their everyday finances. The concern is understandable. According to JD Power data, just 35% of customers are financially healthy.[1] While that level is steady month-over-month, many customers are still feeling the pain of high prices and preparing for the worst.
Financial Health Holds Steady Amid Rising Concerns
The number of customers who are financially healthy remained steady at 35% for a second consecutive month. This is the first time in over a year that customer health has not regressed after a one-month bump, giving some hope that the recent gains could be sustainable.
Despite the steady financial health numbers, the percentage of bank customers who say the cost of goods is increasing faster than their income rose sharply to 70%. The biggest gain was among healthy customers (59%), up 8 percentage points in the last month.
Recession Confessions
Even as some customers firm up their financial footing, the looming threat of an economic downturn has the majority of people on edge. Overall, 86% are either somewhat or very worried that a recession will make things worse in their everyday life. This rate is highest among overextended customers (54%), followed by healthy customers (53%).
When asked how prepared they are for a recession, 18% of customers say they are not at all prepared, and another 22% of customers say they do not know where to begin to get prepared. Just 9% of customers feel comfortable enough to weather a recession in their current economic situation.
Customers cite reducing their discretionary spending (47%), creating or building up an emergency fund (43%), or having more cash available (39%) most often as measures they can take to prepare for a recession. One-third (34%) say pay down debt, while only 9% say having access to more credit or loans.
Building Partnerships
After finally making inroads on financial health, customers are worried about losing that progress. But instead of being paralyzed by fear, customers need to spring into action and plan contingencies. That’s where banks come in.
Customers seem to understand that preparedness is within their grasp. Instead of leaning on loans and more lines of credit, customers are ready to hunker down, reduce spending, and pay down their debt. But they may need help from their bank to devise a plan. With 40% of customers indicating that they either do not know how to go about preparing or do not know where to start in preparing for an economic lull, banks can tailor their communications to educate and triage in the event of any setbacks. Those who can do this effectively will reap the rewards of healthier customers and better relationships.
Find out More
This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in April 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.
Media Contacts
Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.