SAN RAFAEL, Calif.—November real personal consumption expenditures were up 2.8% from the same month last year suggesting that when the numbers are compiled and released for this most recent holiday season consumer spending will exceed numbers not seen since before the beginning of the Great Recession.
The link between the level of consumer financial anxiety and their spending habits is evident, according to Money Anxiety Index, which is showing that the current level of financial anxiety among consumers, at 67.0, is nearly where it was on the eve of the Great Recession in December of 2007.
“The decrease in the level of financial anxiety among consumers is attributed mainly to strong employment figures and growth in personal income,” Money Anxiety Index reported.
As CUToday.info reported, the November employment figures show that the economy added 321,000 nonfarm jobs, which is the strongest monthly gain in nearly three years, increasing the three-month employment average to a gain of 278,000 per month. Personal income increased 0.4% in November from an upwardly revised 0.3% growth in October. Additionally, wages and salaries increased 0.5% in November.
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. It was developed by Dr. Dan Geller.
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