In the 2nd quarter of this year, the level of money anxiety among consumers subsided by 7.7 points to 71.6 mainly due to positive news on employment, which added over 200,000 non-farm jobs each month during the quarter. The decrease in the level of money anxiety during the 2nd quarter pushed GDP up by 4.0 percent compared to the previous quarter.
However, as rollercoasters go, the 3rd quarter Money Anxiety Index is up again. After a promising second quarter, the Money Anxiety Index increased 1.1 points thus far to 72.7 signaling higher level of financial anxiety among consumers as a result of economic uncertainty over the conflict with Russia. As a result of higher money anxiety, July retail sales were flat and new home sales fell 2.4 percent in July.