Consumer Reports Index: Even the affluent pessimistic about economy
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We're just two months away from the presidential election -- an election that may well be decided on how voters feel about the economy.
There are signs of continued recovery. Car sales are up. Home sales are up. Home prices are going up. But people just don't feel better off.
And according to the Consumer Reports Index, Americans are growing more pessimistic about their financial situation.
"Since the recession hit four years ago, low-income families have been discouraged, but Consumer Reports' latest figures show even those earning $100,000 or more are turning negative," said Mandy Walker of Consumer Reports.
The Consumer Reports Index tracks consumer sentiment and found it continued to drop in the last month, and is now well below 50, meaning more people think their financial prospects are getting worse rather than better.
"Each month Consumer Reports asks a cross section of Americans about specific financial troubles they've faced in the past 30 days, and those are on the rise, even among the more affluent. The Consumer Reports Index calls it the Trouble Tracker, and it increased dramatically in the past month.
"The biggest problems are lost or reduced health care coverage, inability to pay for medications and medical care, and missed payments on major bills. And Consumer Reports' data show more people are losing jobs than are gaining jobs. That needs to turn around for Americans to feel more secure and get the economy moving again," Walker said.
The Consumer Reports index found that those who appear to be well-off -- households making more than $100,000 a year -- feel under more financial stress.
These affluent Americans are the ones who have the discretionary income to buy things other than necessities. If they feel more insecure and cut back on their spending, this will have a ripple effect, slowing the overall economy.
There are signs of continued recovery. Car sales are up. Home sales are up. Home prices are going up. But people just don't feel better off.
And according to the Consumer Reports Index, Americans are growing more pessimistic about their financial situation.
"Since the recession hit four years ago, low-income families have been discouraged, but Consumer Reports' latest figures show even those earning $100,000 or more are turning negative," said Mandy Walker of Consumer Reports.
The Consumer Reports Index tracks consumer sentiment and found it continued to drop in the last month, and is now well below 50, meaning more people think their financial prospects are getting worse rather than better.
"Each month Consumer Reports asks a cross section of Americans about specific financial troubles they've faced in the past 30 days, and those are on the rise, even among the more affluent. The Consumer Reports Index calls it the Trouble Tracker, and it increased dramatically in the past month.
"The biggest problems are lost or reduced health care coverage, inability to pay for medications and medical care, and missed payments on major bills. And Consumer Reports' data show more people are losing jobs than are gaining jobs. That needs to turn around for Americans to feel more secure and get the economy moving again," Walker said.
The Consumer Reports index found that those who appear to be well-off -- households making more than $100,000 a year -- feel under more financial stress.
These affluent Americans are the ones who have the discretionary income to buy things other than necessities. If they feel more insecure and cut back on their spending, this will have a ripple effect, slowing the overall economy.
