Americans feel more confident about their financial prospects than a year ago

WalletHub, the site specialized in economics and finance, published its report on confidence in the economy, which indicates that American consumers feel 22% more confident about their financial prospects this month, compared to a year ago.

The WalletHub Economic Index is based on a monthly survey that assesses the economic outlook based on 10 components of consumer sentiment. These components revolve around how people feel about their finances, purchasing plans, and employment opportunities.

“The 22% increase in consumer confidence over the past year is an encouraging sign that our economy is recovering from the damage it suffered as a result of the pandemic and inflation. “People who have high financial confidence are likely to spend more money and reduce their debt, which is good for the economy as a whole,” said WalletHub analyst Cassandra Happe.

Change in WalletHub Economic Index, between May 2024 and May 2023:

• WalletHub General Economic Index, +22.1%

• Stress level about money now, -0.7%

• Positive sentiment about debt levels in the next 6 months, +2.3%

• Positive sentiment about current employment opportunities, +3.6%

• Confidence in having a job in 6 months,+5.4%

• Positive sentiment on finances now, +8.4%

• Positive outlook on finances in 6 months, +9.9%

• Positive sentiment about credit score in the next 6 months, +10.1%

• Probability of making a major purchase in the next 6 months, +21.7%

• Probability of buying a car in the next 6 months, +30.2%

• Probability of buying a house in the next 6 months, +31.0%

Year after year, consumers felt more confident about their financial prospects in May 2024, and the overall index value recorded was more than 22% higher than in May 2023. At the same time, consumer confidence reached highest level recorded since December 2020.

The WalletHub Economic Index is based on a nationally representative online survey that WalletHub conducts monthly. There have been a total of approximately 9,700 respondents between December 2020 and May 2024.

To learn more details about the report, go here.

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