Consumers Feel Better about Personal Finances
According to a new survey, consumers in the United States are finally starting to feel better about their personal finances.
Absolute Strategy Research has been studying perspectives on job security, future economic prospects and financial success since mid-2009. In June 2010, ASR found that 80% of households worried about their financial predicament, but now that figure has dropped to 66%. America has seen a steady improvement in the way that people feel about their finances, but this is the first time that more people actually feel better off than a year ago, rather than worse off.
The latest report also indicates 24% of those surveyed think their financial circumstances will improve over the next 12 months, which could point to even better findings in the coming year. One in five respondents say their situations have improved over the last 12 months and will continue to get better over the next year.
In terms of how Americans see the country’s economy as a whole, 30% still say the U.S. is in a depression or recession. Nevertheless, that number has dropped from 36% last year, indicating that people are starting to regain hope for the economy.
As of August 2014, 72% of those surveyed said policymakers have not done a good job over the last 12 months, down from 78% in February.
“If US wages accelerate to 3% over the next three quarters and unemployment falls to 5.5%, we believe that the US upswing could morph from an export-led affair into something more broad-based and domestically focused,” the study said. “We may not be seeing the classic credit-led consumer boom, but we think the improvement in US Household Finances may be underestimated by the market.”