McKinsey COVID-19 impact US wave 7

McKinsey & Company 1
40% of consumers skipped or partially paid a bill payment over the
past month
FINANCIAL DECISION MAKER SENTIMENT PULSE FROM MAY 25, 2020
NEXT PULSE JUNE 7
Bill payments over the past month1
Percent of respondents with given type of bill payment
1. Q: For each of the following types of bills, did you pay the bill(s)…
Source: McKinsey Financial Insights Pulse Survey, N = 1,250; Sampled and weighted to match US gen pop 18+ years; Margin of error for wave-over-wave changes is +/- 3 percentage points for all financial
decision makers, and larger for sub-audiences; US Survey 5/25/2020
16 16
24 24
60 60
May 10
Skipped at least one bill payment
Did not skip or partially pay any bill payment
Did not skip any bill payments,
but partially paid at least one bill payment
May 25

Almost 1/3 of consumers with a credit card skipped or partially paid
their payment last month
NEXT PULSE JUNE 7
7
9
9
7
6
4
6
25
17
16
15
9
10
11
68
74
75
78
85
86
83
Telecommunications
Auto loan
Credit card
Mortgage
Insurance
Rent
Utilities
Bill payments over the past month by age1
14
15
15
11
11
11
14
31
29
32
25
19
23
23
55
56
53
64
70
66
63
Age 18-34All respondents
8
7
8
8
7
4
6
25
16
13
12
9
8
9
67
77
79
80
84
88
85
Age 35-54
4
5
1
1
1
2
20
2
4
5
3
4
5
76
93
95
94
96
96
93
0
Age 55+
Partially paid
Skipped payment
Paid in full

Almost half of consumers with a credit card and household income
<$25K skipped or partially paid their payment last month
NEXT PULSE JUNE 7
17
12
13
8
10
6
11
27
16
23
10
10
11
11
56
72
64
82
80
83
78
Auto loan
Credit card
Utilities
Mortgage
Rent
Telecommunications
Insurance
Bill payments over the past month by household income1
9
8
16
8
5
5
6
32
23
15
18
13
11
17
59
69
69
74
82
84
77
$25,000 - $49,999<$25,000
7
12
8
5
6
4
6
26
17
18
18
9
11
11
67
71
74
77
85
85
83
$50,000 - $99,999
4
7
4
9
3
4
4
18
12
13
12
6
7
6
78
81
83
79
91
89
90
$100,000+
Partially paid
Skipped payment
Paid in full

Most consumers who have received or expect to receive a
government stimulus check plan to use it to pay bills
NEXT PULSE JUNE 7
39
54
62
35
21
14
26 25 24
May 10Apr 26
I do not expect
to receive a
support payment
I expect to receive a
support payment but
have not received
one yet
I have received a
support payment
May 25
Support payments from government1
Percent of respondents
How do you intend to use your support payment2…
71
51
38
32
32
24
Insurance
Auto loan
Utilities
Credit card
Mortgage
Telecommunications
1. Q: Do you expect to receive / have you received a support payment from your local or federal government during this crisis?
2. Q: On which types of spending did you use / do you intend to use your support payment? (Note: Data from May 10)
Source: McKinsey Financial Insights Pulse Survey, N = 1,250; Sampled and weighted to match US gen pop 18+ years; Margin of error for wave-over-wave
changes is +/- 3 percentage points for all financial decision makers, and larger for sub-audiences; US Survey 5/25/2020
64 66
36 34
Paying bills
Apr 26
Not paying bills
May 10

Nearly half of consumers report they could live off their current
savings for only 4 or fewer months
NEXT PULSE JUNE 7
How long can you live off of your current savings?1
Path to reducing household spending2
1. Q: If your household experienced loss of your job, how many months would you be able to live off your savings, without making any changes to your current
standard of living?
2. Q: How are you reducing household spending?
24 22 20 20 18 20 21
23 25 27 27
25
26 25
14 18 15 13 17
18 17
7
6 8 8 8
8 8
32 29 30 32 32 28 29
2-4 months
May 10Mar 29 May 25Mar 22 Apr 5
5-8 months
Apr 12 Apr 26
1 yr+
9-12 months
<1 month
Source: McKinsey Financial Insights Pulse Survey, N = 1,250 Sampled and weighted to match US gen pop 18+ years; Margin of error for wave-over-wave
65
52
49
31
19
Reducing wherever I can
Eliminate things I
can live without
Postpone spending
Buy lower cost items
Buy fewer quantities

Nearly half of consumers are concerned about job security, though
this number has been dropping since March
Overall job security concerns1
1. Q: How concerned are you about your job security given the Corona virus (COVID-19) impact?
2. Industry responses aggregated from Waves 1-7 data
25
20 22 25 28 25 27
25
30 29 27
28 30
31
50 50 49 48 44 45 42
Concerned
Mar
29
Not concerned
Mar
22
Apr 5 May
10
Apr
26
Apr
12
NA /
don’t know
May
25
Source: McKinsey Financial Insights Pulse Survey, N = 1,250 Sampled and weighted to match US gen pop 18+ years; Margin of error for wave-over-wave changes is +/- 3 percentage points for all financial
NEXT PULSE JUNE 7
Job security concerns by industry2
Concerned
Not concerned
NA / don’t know
71
66
66
66
64
60
56
53
45
28
32
30
33
33
39
42
45
54
Education
IT
Transportation/utilities
Retail/wholesale trade
Teleco/other media
Manufacturing
Banking
Healthcare/insurance
Government

30% of consumers with a credit card or auto loan expect to skip or
only partially pay next month
NEXT PULSE JUNE 7
7
9
8
7
3
5
5
23
17
14
16
12
10
12
70
74
78
77
85
85
83
Rent
Credit card
Mortgage
Auto loan
Telecommunications
Utilities
Insurance
Bill payment expectations in the next month1
1. Q: For each of the following types of bills, do you expect to pay the bill(s)…
Source: McKinsey Financial Insights Pulse Survey, N = 1,250; Sampled and weighted to match US gen pop 18+ years; Margin of error for wave-over-wave
# of respondents
1,051
601
626
602
1,180
1,201
1,089
Skip payment
Partially pay
Pay in full

McKinsey COVID-19 impact US wave 7

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