SAN RAFAEL, Calif.—The yearly increase of 3.2% in retail sales mirrors the improvement in the financial confidence of consumers, according to one measure.
The Money Anxiety Index, which measures consumers' financial behavior, decreased by 12.9 index points from December 2013 to the same month in 2014. The sizable decline in the level of money anxiety among consumers during 2014 is the largest yearly improvement since the Great Recession, Money Anxiety stated.
“The link between consumers' spending habits and their level of financial worry and stress is strong and significant. Research…clearly shows how consumers reduce their spending at the first sign of an economic slowdown,” said Money Anxiety Index. “Conversely, consumers gradually increase their spending when the economy is improving, as in the case of the 3.2% increase in retail sales during 2014.”
The Money Anxiety Index measures consumers' level of financial worry and stress. 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. The Money Anxiety Index was developed by Dr. Dan Geller.
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