Consumers are only cautiously more confident because of the dichotomy of economic news. On one hand the U.S. labor market continues to improve by adding 223.000 new jobs in June. On the other hand, the U.S. economy is facing some head winds from the Greek crisis in the Euro Zone, and a financial crisis in Porto Rico.
Consumers exhibited financial nervousness throughout the first half of this year. In January of this year, the Money Anxiety Index increased 2.1 points reflecting harsh winter conditions in many parts of the country. In May of this year, the index had another bump due to a slightly negative first quarter GDP causing fear of economic slowdown.
“Consumers want to believe that things are getting better economically” says Dr. Dan Geller, the developer of the Money Anxiety Index and the author of the book Money Anxiety, “but every time they do, something else comes up and temporarily shakes their confidence.”