SAN RAFAEL, Calif.—Consumers acted in complete contrast in responses to consumer confidence surveys in the first two months of 2015, showing that what people say and what they do with their money are mutually exclusive, according to analysis by the Money Anxiety Index.
In February of this year, the two leading survey-based consumer confidence indices reported a decrease in the level of consumer confidence from the previous month. Yet, in actuality, consumers increased their consumption during February by about $12 billion or nearly 1%. “That is paradox, because consumers spending should decrease with lower consumer confidence,” observed MoneyAnxiety.com
The company noted that a similar but inverse scenario occurred in January of this year, when the two leading survey-based consumer confidence indices reported an increase in consumer confidence from the previous month. However, actual consumer spending in January declined $28.5 billion or about 2.4%.
The Money Anxiety Index, which is based on what consumers actually do with their money, reflected the financial confidence of consumers during the first two months of this year, the company said. In January of this year, the Money Anxiety Index showed an increase of 0.9 points in the level of financial anxiety among consumers, i.e. lower confidence, which was accurately reflected by a decrease of $28.5 billion in personal consumption. Similarly, in February of this year, the Money Anxiety Index showed a decrease of 2.5 points in the financial anxiety of consumers, i.e. higher confidence, resulting in an increase of $12 billion in personal consumption.