LARKSPUR, Calif.—Concern over a slowdown in the job market is keeping consumers “financially anxious” and could lead to a decrease in spending during the upcoming holiday shopping season, one analyst reports.
Dan Geller, a financial behavior scientist who also assembles the Money Anxiety Index, said the October Money Anxiety Index remains nearly flat, at 64.3, dropping only 0.1 index points from September and only 0.2 points from August. The flatting of the Money Anxiety Index in the past three months comes after a major improvement of 2.6 index points in July.
The Money Anxiety Index measures consumers' level of financial worry and stress.
“The lack of improvement in the Money Anxiety Index in the past three months points to a growing concern among consumers about the strength of the job market,” said Geller. “The September jobs report was disappointing as only 142,000 non-farm jobs were added. Additionally, the August jobs report was revised down from 173,000 to 136,000 according to the latest report from the Bureau of Labor Statistics.”
If the Money Anxiety Index remains somewhat flat in November, Geller said to expect a lukewarm holiday shopping season.
“Historically, consumers spent more during the holiday season when the Money Anxiety Index was in decline, and reduced their spending when the index was flat or moving upwards indicating growing financial anxiety,” said Geller.