Recession-Induced Sleep Disorders Plague Nation
Posted January 25, 2010Sleep Quality
A slumbering economy could benefit from a good night’s sleep. But, in a Catch-22 scenario, it is the economy itself that is keeping Americans up at night, according to new research undertaken by 8Sages.
Poor-quality sleep is more prevalent among those with the “Weakest” financial balances than among those with the “Strongest” financial balances.
During the average night in the first ten days of January, the percent of consumers reporting having a “bad” rather than a “good” night’s sleep was more than four times higher among those with the Weakest financial balance scores (39%) than among those with the Strongest (9%).
(Financial strength is determined through the Consumer Balance Index [CBI], which tracks consumer perception of the balance between their income and assets versus debt and spending obligations. The CBI is a rough gauge of the severity of recession’s grip on a consumer.)
Far from being an esoteric evaluation of the nation’s physical and financial health, sleep quality is a matter of concern not only to the sleep-deprived but also to managers of business, government and charitable enterprises.
Poor sleep quality adversely affects the productivity of workers.
Grip of the Recession
Since dropping precipitously from its pre-recession high of 95 in October 2007 to 87 in November 2007—a month prior to the BAE’s official announcement of the start of the recession in December 2007—the CBI has moved irregularly lower for over two years.
The recession’s grip eased in 2008 but then tightened in 2009 before again easing. Specifically, the CBI, after declining to a recession low of 73 in October 2008, rebounded thirteen points to 86 in May 2008 only to return to its recession low of 73 in September 2009 before rebounding again to 82 in January 2010.
Given the fluctuation of the CBI, a broad majority of all consumers have now become resigned to the prospect of enduring the hardships of recession for a protracted period. As of January 2010, only 22% of consumers expect the recession to end within the year. Consumers now believe the President and Federal Reserve Board’s prediction that the nation faces a rough time as it pulls out of its economic difficulties.
The percent of the nation reporting they have been hurt by the economy stands at 50% in January, 2010. This compares to a low of 46% in April and June 2009 and a high of 55% in July.
Keeping consumer finances in balance is of vital importance to everyone. When consumers’ finances tilt unfavorably, they not only lose sleep but they also cut back on spending, disturbing the night rest of retailers; they work less productively, disturbing the sleep of employers; and they strike out irritably at friends, relatives, politicians, and anyone else they feel might be disturbing their sleep.
The greater the unfavorable tilt of consumer finances, the fewer consumers who get a good night’s sleep and the greater negative effect of consumer sleeplessness on everyone who deals with them.
The President and Consumer Sleep Disorders
As the grip of recession persists and tightens, the percent of the nation displeased with President Obama’s performance in office more than doubles, from 22 % displeased in June to 49% displeased in January (up from 42% in December).
The American public is acutely aware of the nation’s employment problem. When asked to name the major problems facing the nation in January, 40% spontaneously say unemployment. No other problem is mentioned as frequently.
Little wonder that unemployment is front and center in the public’s mind as a national problem. A clear and constant majority of consumers report someone in their household have a chance of being laid off. Over the past year, the number has ranged from a low of 51% to a high of 57%. Now, in January 2010 it is 53%.
Reports of having a bad night’s sleep are more frequent among consumers who fear they or someone in their family will be laid off (27%) than among those who have no such fear (14%).
Beyond attitudes toward the President, the public’s political leanings toward political parties are showing signs of shifting. Between December and January, there was a definite shift away from the Democratic Party. Among those who lean Democratic, the percent leaning “strongly” Democratic decreases from 46% in December to 40% in January.
Conversely, among those who lean Republican, the percent leaning “strongly” Republican increases from 39% to 42%.
The incidence of consumers reporting having had a bad night’s sleep is higher among those who report they lean strongly Democratic (24%) than among those who lean strongly Republican (16%).
Consumer Spending and Consumer Sleep Disorders
Typically, as the recession tightens its grip, consumers find their financial balances tip unfavorably, so they cut back on spending aggressively. Conversely, as the recession eases, consumers find their financial balances tip favorably and spend more freely.
Not so between December and January.
Even though the Consumer Balance Index ticked up a point between December and January, the Index that tracks consumer willingness to spend freely for food, clothing, gasoline and other consumables decreased from 80 to 77. The Index tracking active shopping for major goods—checking prices, visiting dealers—also decreased from 93 to 87.
| Consumer Balance Index | |||||
| Dec 2009 |
Jan 2010 |
Diff. Dec-Jan |
|||
| CONSUMER BALANCE INDEX (CBI) | 81 | 82 | +1 | ||
| Willingness to Spend Freely for Consumables: | |||||
| INDEX | 80 | 77 | -3 | ||
| PERCENTS | |||||
| Food | 43% | 39% | -4 | ||
| Clothing | 36% | 36% | 0 | ||
| Gasoline | 46% | 41% | -5 | ||
| Medical Services | 68% | 69% | +1 | ||
| Active Shopping for Major Goods Index | 93 | 87 | -6 | ||
| Percent Actively Shopping For… | |||||
| New Car | 6% | 4% | -2 | ||
| Used Car | 6% | 7% | +1 | ||
| House | 6% | 7% | +1 | ||
| Furniture | 8% | 8% | 0 | ||
| Personal Computers | 9% | 8% | -1 | ||
| Major Appliances | 9% | 7% | -2 | ||
| New Carpeting | 3% | 5% | +2 | ||
| Color TV | 10% | 9% | -1 | ||
| Air Travel | 14% | 14% | 0 | ||
| Overnight Hotel/Motel | 16% | 13% | -3 | ||
What the research shows is that the American consumer is afflicted by recession-induced sleep disorders. The economy—judging by the CBI—continues to bop along.
What the nation might need is a good night’s sleep.
TO ASK QUESTIONS request detailed data, make suggestions or offer your projections of the future, phone Leo J. Shapiro, CEO, SAGE: Survival and Growth Enterprises LLC. He can be reached in Tucson at 520-878-0188.
Copyright January 2010 by Leo J. Shapiro – All Rights Reserved.