Consumers are reporting significantly fewer financial woes in 2013, according to The Consumer Reports Index, a measure of Americans’ personal financial health. Troubles dropped in May 2013 more than 50% from a high-water mark in September 2009, when they measured 68.7. Index numbers scale from one (lowest) to 100 (highest) to indicate the fiscal difficulties consumers faced in the past 30 days.
The greatest drop in financial difficulties reported during May 2013 was among consumers in households earning less than $50,000, followed by the most affluent ― those earning $100,000 or more.
The Consumer Reports Index also indicated that job gains outpaced job losses for the third consecutive month. The only group that shed more jobs than it gained included consumers with a high school education or less.
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The data indicates that “consumers may be starting to see and feel the progress of the economic recovery,” noted Ed Farrell, Director of Consumer Insight at the Consumer Reports National Research Center. “Despite the improvements, consumers are still frigid about robust spending. We are watching closely and waiting to see how long it will take them to thaw out from the mindset created by the conditions of the past five years.”
However, the report also noted that financial stress levels rose during May, averaging 55.3 points from 53.8 the month prior. The most stressed Americans were women, including those earning less than $50,000 annually; aged 18 to 34, regardless of income; and women living in the North East.
The Consumer Reports Index survey was conducted by phone between May 30 and June 2, 2013. More than 1,000 people participated: 511 women and 507 men aged 18 and older living within the continental U.S.
For a copy of the full report, contact C. Matt Fields via email by clicking here.
