With inflation easing in July, Americans have been given a bit of breathing room, as a new survey has found that fewer adults are living paycheck-to-paycheck than at the beginning of the summer.
The report from LendingClub found that as of July, 59% of Americans reported living paycheck-to-paycheck. When asked in June, that number was 61%, a slight improvement but still above the 54% it was a year ago.
Top earners and low-income workers alike have been hit hard by the decade's high inflation, but the latter has taken the brunt of the price hikes.
According to the survey, 75% of workers earning less than $50,000 and 63% of those making $50,000 to $100,000 reported living paycheck to paycheck in July. Among top earners, those making more than $200,000, 30% reported the same financial struggles.
Among the top expenses for Americans throughout the summer, sky-high prices for food, gas, and rent have left the pockets of Americans near empty. But recent decreases in some costs are helping.
Gas prices have steadily fallen since the national average topped out just above $5 per gallon in the Middle of June and most recently fell below $4 for the first time since March, AAA reported.
But, even though some prices have fallen, experts are still worried that more financial difficulties are on the horizon as more than half of all U.S. consumers struggle with paying for their day-to-day lifestyles. This has led many to rely on credit cards or take money out of their savings.
Anuj Nayar, LendingClub's financial health officer, shared with NBC News that saving has been difficult for consumers with inflation continuing to push the cost of necessities higher.
"Not only are consumers saving less every month, but they are likely to encounter an emergency expense, if not multiple, putting them at a greater risk for increased financial hardship," Nayar added. "This fact paves a financially difficult road ahead for consumers."
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