Monday, May 7, 2012

Consumers still anxious about economy, index shows

A gauge of consumers' financial anxiety has stalled after nearly a year of improvement, suggesting worries about the economy continue.

Financial researcher Dan Geller's Money Anxiety Index stands at 89.7 this month, the same level as April, after falling for nearly a year before that. The index, which measures consumers' financial stress based on economic indicators, had fallen since June 2011, when it hit 99.5 - the highest level in 30 years. The index has ranged from a low of 40.3 in the mid-1960s to a high of 136 in the early 1980s.

Last month's jobs report, which showed fewer new jobs than in months past and more job-seekers dropping out of the hunt, was likely the main factor in halting the positive momentum, Geller said. If the index begins climbing again, that could have an effect on the presidential election this year, he said.

"No U.S. president ever won re-election to second term in the last 50 years while the Money Anxiety Index was rising during the re-election year," he said. "At the end of the day, people vote based on the economy - or more precisely, based on how anxious they are about their finances."


dialabank said...

It appears the recent spate of good news about the economy has spurred
an upturn in economic optimism in the country as a whole.

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