Consumer Confidence Jumps in Past Year
By: M. Scott Morris
Published: June 3rd, 2024
Consumers felt more than 22% more confident about their financial outlook in May than they did one year ago, according to the latest WalletHub Economic Index.
The index is based on a monthly survey that evaluates economic prospects based on 10 components of consumer sentiment. These components revolve around how people feel about their finances, purchasing plans and employment opportunities. Key stats include:
- Real estate popularity rise. In May, home-buying interest among consumers increased by more than 31% compared to last year, hitting the highest level recorded since December 2020.
- Increasing interest in auto purchases. The share of consumers who expect to buy a car in the next six months was more than 30% higher in May compared to last year.
- Large purchases are a priority. In May, consumers' likelihood of making a large purchase in the next six months was roughly 22% higher than last year. In addition, the likelihood registered the highest level since December 2020.
- Credit score security. The share of consumers who expect their credit score to increase in the next six months was more than 10% higher compared to last year. At the same time, consumers' confidence in increasing their credit score registered the highest level since December 2020.
- Increase in optimism. In May, consumers' optimism about whether their finances will improve in the next six months increased by roughly 10% compared to last year, registering the highest level on record since December 2020.
For the complete WalletHub Economic Index, click here.
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