89.9% of those who currently have a job say they are not counting on a salary increase next year, according to the latest American Pulse™ Survey of 5,242 respondents. Consumers are still struggling with high fuel prices and the rising cost of goods while incomes will likely remain unchanged. Only 10.1% think they will see a pay increase while the rest are planning to have less disposable income.

In order to prepare for higher prices and stagnant incomes, most Americans (70.5%) are planning to buy just the necessities. Driving less and spending less on clothing are also popular penny-pinching activities:

How to Prepare for Rising Food/Gas Prices If Salary Stays the Same
Only buying necessities: 70.5%
Driving less: 63.4%
Spending less on clothing: 58.9%
Comparison shopping: 53.1%
Sticking to a strict budget: 50.0%
Buying more store brand/generic products: 49.9%
Spending less on groceries: 42.0%
Nothing: 6.6%

Source: American Pulse Survey, June-2011

The vast majority of consumers who expect their salaries to remain the same are planning to cut back—only 6.6% are not planning to make any changes to their spending habits.

Further, 3 out of 4 Americans (75.7%) have little or no confidence that the government’s economic policies will get the economy back on track while 24.3% say they are confident or very confident. Confidence was at its lowest in March (21.5%), and has been steadily declining since June 2010 (31.2%). SEE CHART

In addition, the majority of American consumers (68.6%) are somewhat/very worried that the U.S. government will slip into another recession this year. 11.8% are not very or not at all worried while 19.6% are unsure.

The Federal Reserve has suggested printing money as a way to help get the economy back on track, but most Americans don’t think this will work. While 18.0% think creating more currency will boost the economy, over half (61.0%) say flooding the market with new bills will hurt the economy in the long run (21% aren’t sure).

Speaker of the House John Boehner’s policy that would match any increases to the debt ceiling with equal spending cuts is mostly favorable among Adults 18+. 44.2% somewhat or strongly agree with this plan; 21.7% disagree and 34.1% are neutral. In order to balance the budget, Americans are willing to make cuts to public workers’ salaries and benefits (49.0%), welfare programs (38.9%) and military spending (33.8%).