LARKSPUR, Calif.—Consumer spending in the third quarter of this year increased by 3% compared to an increase of only 1.7% during the same time period last year, according to the latest personal consumption data released by the U.S. Department of Commerce.
Conversely, the pace of bank savings decreased by half in the third quarter of this year, up only 0.6% compared to an increase of 1.2% during the same period last year, according to the latest FDIC data, pointed out Dan Geller, a financial behavior scientist who also assembles the Money Anxiety Index.
“The increase in the amount of spending, and at the same time, the decrease in the amount of savings, is prompted by a lower level of financial anxiety,” said Geller. “The Money Anxiety Index, which measures the level of financial stress and anxiety among consumers, decreased by 7.4 index points between the two periods. In the third quarter of this year, the Money Anxiety Index stood at 64.5 compared to 71.9 during the same time last year.”