American personal finances continue to approve, according to new research from Consumer Reports. The Consumer Reports Index, a statistical measure of the standing of Americans' personal finances, indicates that the American consumer is better positioned than at any point since 2009 when data was fist compiled.
The Consumer Reports Index looks at five different variables to determine total financial health including employment, retail, personal sentiment, financial stress, and a “Trouble Tracker” to find potential problems.
The Trouble Tracker is at the lowest level since April 2009. The Trouble Tracker rests at a reading of 38.7 compared to 50.2 at its peak.
The Consumer Reports Index finds that those who earn more than $100,000 per year feel the best about the future of their finances. The index for consumer sentiment among those who earn more than $100,000 rose to 59.7. Those who earn less than $50,000 in gross pay have the worst view on their financial future. The sentiment index is still pointing toward a negative outlook, as consumers in this category scored at 48.2 percent. A reading of 50 percent shows no change; higher readings are positive changes, and lower readings are negative changes.
Stress remains high. While stress has declined overall, Americans report that stressors from their finances are still getting worse each month. The data shows an interesting trend in declining readings for the “Trouble Tracker” while the stress felt by Americans rises higher. The disagreeing readings may point to the fact that Americans have historically had a very low savings rate, and higher rates of savings among the American populace may be leading to tough decisions, even if it results in better financial outcomes.