BY JOE TRUSTY
A Recession Could Mean Less Discretionary Dollars For The
POOL INDUSTRY
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ool industry analysts are concerned that a recession could mean less discretionary dollars spent in the backyard over the next few years. In June, inflation increased to 9.1%, the highest it’s been since 1981. Today, the dollar is at a near 1:1 ratio with the euro. The last time there was a parity between the two currencies was 20 years ago. With questions of a looming recession, over 70% of Americans think we may already be in the middle of one.
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The majority of financial analysts are convinced we already are headed for a downturn, according to Fortune. Consequently, many consumers have already begun to cut back on their discretionary spending, particularly for home improvement projects. A recent poll conducted by CreditCards.com showed that 47% of consumers surveyed said they don’t plan to increase their discretionary spending.
POOL MAGAZINE - VOL 2, ISSUE 3
Furthermore, Forbes forecasted that 7 in 10 people feel less confident making a major purchase than just 6 months ago. These numbers indicate confidence has sunk to pre-Covid levels and it appears that consumers have begun to curtail making larger discretionary purchases. Gas prices surged to well above $5.00 a gallon throughout many areas of the U.S. on the heels of the situation in Ukraine. Prices have only now slowly begun to come back down. As of today’s writing, the national average for a gallon of gasoline stands at $4.57. Reportedly 26% of consumers have begun to belt tighten during conditions where they’re spending more at the pump as well as at the grocery store.
