The amount of consumer spending in the third quarter of this year increased by 3.0 percent compared to an increase of only 1.7 percent during the same time period last year according to the latest personal consumption data released by the U.S. Department of Commerce.
Conversely, the pace of bank savings decreased by half in the third quarter of this year up only 0.6 percent compared to an increase of 1.2 percent during the same period last year according to the latest data reported by the FDIC.
The increase in the amount of spending, and at the same time, the decrease in the amount of savings, is prompted by a lower level of financial anxiety. The Money Anxiety Index, which measures the level of financial stress and anxiety among consumers, decreased by 7.4 index points between the two periods. In the third quarter of this year, the Money Anxiety Index stood at 64.5 compared to 71.9 during the same time last year.