Have uncertain market conditions led you to delay or cancel a major transaction? If so, you’re not alone, per the findings of a recent survey conducted by PwC.
In a survey gauging economic sentiment, the Big Four firm found that both consumers and financial services executives say they’re postponing financial decisions due to uncertainty. The survey went to 1,004 consumers and 204 financial services execs, and broke out results for each group. It marks PwC’s first report of this kind in financial services, according to the company.
PwC’s survey, which was conducted May 27 to June 3, detected a strong level of overlap between the two seemingly disparate respondent groups. For instance, 73% of financial services execs said they “have or are planning to delay or cancel M&A activity due to current market volatility.” On the consumer side, 64% of Gen Zers and 68% of millennials said they’re postponing a major financial decision “due to uncertainty,” PwC said in the report. Just about half (49%) of baby boomers said the same.
“In short, consumers are reassessing their plans for savings, investment, and discretionary spending, while executives scrutinize their corporate strategy, especially around deals,” PwC wrote in the report.
Both sets of respondents also cited inflation as a top-three concern. The survey revealed that 64% of consumer respondents selected “inflation, rising costs or increasing prices” among their top three biggest concerns. That was the largest share among consumers. On the executive side, 43% picked that option among their top three biggest concerns, while 44% cited “geopolitical events, global conflicts, or broader market instability.”
PwC officials said the executives’ responses reflected “their focus on macro trends,” while consumers remain “focused on how they can borrow and manage their money.”
The steps that both consumers and executives are taking to address uncertainty may well be permanent, the report suggested. “75% of consumers say the financial behavior changes they’ve made reflect lasting shifts, while 94% of executives say client behavior changes reflect lasting structural shifts,” PwC said.
And perhaps unsurprisingly, the survey also showed diverging views on the prospect of artificial intelligence in life and work. While 91% of financial services executives said that AI is “becoming more important for helping clients navigate uncertainty,” 53% of consumer respondents said they’d “trust AI-powered tools during times of market volatility.”
That tracks with widespread, bipartisan backlash against data centers in communities across the nation. Several local politicians have been quickly voted out for authorizing construction of new data centers, and New York this week became the first state to put a moratorium on new data center development.
“When markets are unpredictable, consumers are loud and clear that they want human advisors to counsel them on their financial strategy,” PwC’s report stated. “Further, consumers say they’re less likely to continue using AI-powered tools in place of established sources, such as financial advisors and online financial news.”
