Consumers feel nearly 8% more confident about their financial outlook this month than they did at the same time last year, according to the latest WalletHub Economic Index, a monthly survey that evaluates economic prospects based on 10 components of consumer sentiment.
According to the survey, large purchases are a priority. In November 2023, consumers were 18% more likely to make a purchase in the next six months than they were at the same time last year. Homebuying interest among also increased substantially by nearly 15% last month compared to last year. The share of consumers who expected to buy a car in the next six months was roughly 10% higher. Consumers also plan to reduce debt, with 3.5% more expecting to have less debt in the next six months. Sentiments regarding job security were also strong, with an increase of 2.6% expecting to have a job in the next half year compared to 2022.
However, stress levels regarding money were 8% higher compared to the same period last year. Consumer optimism about finances also took a modest hit, with a 3% decrease from the previous month and a slight decrease in the past year (-0.3%). “Even though people do have the confidence to spend more, they’re still feeling a bit uneasy, which makes sense given how volatile the economy has been in the past few years,” said a WalletHub analyst.