SAN RAFAEL, Calif.–Consumers are “confused” by conflicting economic signals during the first five months of this year, according to one new economic analysis.
“Contrary to the second half of 2014, which exhibited a robust improvement in GDP and employment, the first five months of this year delivered mixed signals of economic indicators causing uncertainty and confusion among consumers,” according to analysis by Money Anxiety Index.
The company said that in January that Index increased 2.0 points to 67.5, indicating financial unease among consumers about the coming year.
“The harsh winter during that time may have contributed to the increase in financial anxiety,” the company said. “By April of this year, the Money Anxiety Index improved to 66.0 reflecting a slightly lower level of financial anxiety among consumers after a disappointing first quarter results.”
The June preliminary Money Anxiety Index stands at 67.1, which is the same as May, indicating that consumers are taking a "wait and see" approach, the company said, adding that the normal tendency of consumers during times of financial uncertainty is to hold back on spending, which was evident in a flat personal consumption figure during April.
"On the road to recovery, the U.S. Economy is in front of a traffic signal that has both, red and green lights, on at the same time" says Dr. Dan Geller, the developer of the Money Anxiety Index. "Some economic indicators are positive signaling a green light to proceed, and others are negative signaling a red light to stop. Which light is the real one?"
The Money Anxiety Index measures the level of consumers' financial worry and stress based on their spending and savings pattern. Historically, the Money Anxiety Index fluctuated from a high of 135.3 during the recession of the early 1980s, to a low of 38.7 in the mid 1960s.