After a promising second quarter, the Money Anxiety Index is trending upwards signaling an increase in the level of financial anxiety among consumers as a result of economic uncertainty over the conflict with Russia. The August preliminary Money Anxiety Index increased to 72.7 after ending the second quarter with 71.6 – the lowest level of money anxiety since the Great Recession.
The trending increase in the Money Anxiety Index since June reflects growing concerns among consumers about the financial and economic impact the conflict with Russia will have on the U.S. economy. This heightened level of financial anxiety comes amid improving economic conditions in the U.S. in the second quarter of this year, which shows that the concern over the economic conflict with Russia is over shadowing optimism about the improving U.S. economy.
Consumers’ financial concerns and the subsequent increase in their level of money anxiety are already substantiated by the latest development surrounding the conflict with Russia. Yesterday, Russia announced boycott of U.S. produce for one year which totals $1.3 billion. Additionally, Europe, which is a critical market for the U.S. is starting to crumble economically with Italy leading the way falling back into a recession after experiencing two consecutive quarters of declining GDP.