Two looks at consumer confidence released this week offered mixed views on individuals’ current views of their finances and whether they might purchase a vehicle during the next six months.

Beginning first with the 2023 Consumer Spending Survey by Provident Bank, a New Jersey-based financial institution, findings from Provident’s recent survey revealed that 73% of Americans are cutting back on non-essential purchases and travel as the cost of essentials like groceries, utilities, as household expenses and rent remain at an all-time high.

Meanwhile, the Conference Board Consumer Confidence Index increased slightly in March to 104.2, up from 103.4 in February. The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — decreased to 151.1 from 153.0 last month.

The Conference Board also said its Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — ticked up to 73.0 from 70.4 in February (a slight upward revision).

However, for 12 of the last 13 months, the Expectations Index has been below 80, the level which often signals a recession within the next year, according to the Conference Board.

The cutoff date for the Conference Board survey was March 20, about 10 days after the bank failures in the United States.

Earlier in the year, Provident Bank polled 1,000 adults living in the U.S. to determine how consumers are adjusting their personal spending, saving and travel habits.

Despite efforts to cut back and save (11% of those polled eliminated all non-essential purchases), Provident Bank found 78% have either reduced contributions or stopped contributing completely to their savings and retirement accounts.

“Many individuals in the U.S. have been impacted by inflation, and while we’ve seen they are making conscious efforts to spend less, it’s important for bankers to have conversations with their customers on how they can best help them to manage their finances during these challenging economic times,” Provident Bank president and CEO Anthony Labozzetta said in a news release.

Among the findings that might be of most interest to finance companies and dealerships, Provident Bank found:

—78% of consumers said they are not planning on purchasing a home in the next 12 months and 63% do not plan on buying a vehicle in the next 12 months.

—Of those who are planning on purchasing a home, 81% expect to pay asking price or below. Of those who are planning to buy a vehicle, 83% expect to pay sticker price or below.

Other results of this latest survey show what Provident Bank called a “disturbing” trend in the cost of living for the average American.

An earlier survey conducted by Provident in June exhibited significant expense, with 53% of respondents reporting spending between $100-500 or more per month on groceries — that percentage has now risen to 63%.

The most commonly cited spending adjustments included canceling subscriptions and entertainment streaming services and reducing the frequency of dining out and/or takeout purchases. Survey respondents also reported cutting back on drinking alcohol, while others quit smoking entirely.

Additionally, those polled said that buying generic over name-brand products and turning the thermostat down were ways to offset price increases due to inflation.

Travel adjustments — whether routine or vacation — included rescheduling or cancelling vacation plans, limiting air travel and utilizing public transportation.

Despite rising costs, there is optimism looking forward. Provident Bank found that 57% believe their personal finances will improve in the next 12 months.

Additional survey findings from the Provident Bank included:

—Of the 1,000 survey respondents, 43% said they are unwilling to pay more for goods or services that have a positive impact on climate change.

—70% reported swapping regular grocery/consumer goods purchases for less expensive alternatives.

—17% of respondents noted no personal savings ($0.00); while 31% (31.40) reported having between $1.00 and $1000.00 in a personal savings account.

—Of those with $0 in their personal savings accounts: 78% said they have made cuts to personal spending this year; 82% are contributing less or not at all to their retirement savings account(s); and 33% are using their credit cards more frequently.

—Of those with between $1 and $1,000 in a personal savings account, 55% believe they will be better off financially a year from now.

—Of the 42% of respondents that noted having between $1,000 and $25,000 in a personal savings account, 46% shared that inflation and increased cost of living have caused them to contribute less to savings or retirement accounts.

Turning back to the latest research from the Conference Board, the Consumer Confidence Survey asked a special question this month about consumers’ spending plans on services over the next six months.

The results revealed that consumers plan to spend less on highly discretionary categories such as playing the lottery, visiting amusement parks, going to the movies, personal lodging, and dining.

However, they say they will spend more on less discretionary categories such as health care, home or auto maintenance and repair, and economical entertainment options such as streaming. Spending on personal care, pet care, and financial services such as tax preparation is also likely to be maintained.

“Driven by an uptick in expectations, consumer confidence improved somewhat in March, but remains below the average level seen in 2022 (104.5). The gain reflects an improved outlook for consumers under 55 years of age and for households earning $50,000 and over,” said Ataman Ozyildirim, senior director of economics at the Conference Board.

“While consumers feel a bit more confident about what’s ahead, they are slightly less optimistic about the current landscape,” Ozyildirim continued in another news release. “The share of consumers saying jobs are ‘plentiful’ fell, while the share of those saying jobs are ‘not so plentiful’ rose. The latest results also reveal that their expectations of inflation over the next 12 months remains elevated — at 6.3 percent. Overall purchasing plans for appliances continued to soften while automobile purchases saw a slight increase.”