Whether a recession is on the horizon or not is anyone’s guess. However, according to the latest CNBC Invest in You survey, two-thirds of respondents think one is coming. Especially if they’re Democrats or younger people.
More than two-thirds of respondents said they believe the economy is going to weaken going into 2020. People who identify themselves as Republican are far less likely to agree, with 46% saying a recession is coming, compared with 84% of Democrats.
Right now, the economy is strong, giving President Donald Trump a healthy push going into next year’s election. Whether or not voters weigh the state of the economy in their decision, it’s no surprise people are trying to assess the odds of a recession.
If you think you’re better off financially than you were four years ago, you may be a Republican. While almost half of those surveyed said this was the case, only 27% of Democrats agreed. Far more Republicans (66%) say they’re financially stronger than they were in 2016. Nearly a third of Democrats said they are now worse off, compared with 10% of Republicans.
In general, Republicans have a rosier view of the economy: Just 23% said their finances are about the same as they were. Nearly half of Democrats and Independents surveyed, on the other hand, said they are in the same shape economically (41% and 40%).
Those who reported higher household income were also more likely to say they are now better off than they were in 2016. Just 12% of those with a household income between $100,000 and $150,000 said they were now worse off.
Almost half of survey respondents said they were taking active steps to strengthen their finances ahead of a recession, such as paying down debt or cutting their household spending. A third said they are working on building up their emergency savings.