SAN FRANCISCO—The preliminary December Money Anxiety Index stands at 56.7, which is the same level it was 10 years ago, according to its creator, Dr. Dan Geller.
The decrease in the level of money anxiety prior to the holiday season indicates that consumer spending is likely to increase this holiday season because consumers feel more financially confident.
During the past 10 years, the Money Anxiety Index peaked at 100.8 on June 2011. The climb up was much faster for the Money Anxiety Index than the road back down to its current level of 56.7, Geller said. It took the Money Anxiety Index 54 months to climb up to 100.8 compared to 66 months to decrease back to its current level of 56.7.
“The one-year time difference between the increase and decrease in the level of money anxiety shows that it takes longer to build financial confidence than to destroy it,” Geller said. “The impact of the lost jobs, property and wealth during and in the aftermath of the Great Recession was much stronger than the impact of the job gains and economic improvement during the recovery period.”