Consumers feel 13% less confident about their financial outlook now than they did one year ago, according to the latest WalletHub Economic Index, released today (with accompanying expert commentary). This is the second largest year-over-year drop during the past 12 months.
The WalletHub Economic Index is a monthly survey that evaluates economic prospects based on 10 components of consumer sentiment. These components revolve around how people feel about their finances, purchasing plans and employment opportunities.
- Rising stress: Consumers’ stress levels regarding money are nearly 15% worse in January 2023 compared to last year.
- Low financial optimism: In January 2023, consumers’ optimism about their finances is about 14% lower than it was last year.
- Fewer new employment opportunities: The share of consumers who feel new employment opportunities are “abundant” is more than 7% lower in January 2023 compared to last year.
- Weak sense of job security: People’s confidence in having a job in six months is 7% weaker in January 2023 compared to last year.
- Real estate declines: Home-buying interest among consumers decreased slightly (-1.8%) during the past year.
The complete WalletHub Economic Index results can be found at https://wallethub.com/edu/wallethub-economic-index/91926.