2025 WalletHub Economic Index

The WalletHub Economic Index decreased by over 9% between October 2024 and October 2025. This means consumers are less confident about their financial outlook this month than they were at the same time last year.

The WalletHub Economic 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.

“The over 9% decrease in consumer sentiment over the past year is a worrying sign that our economic recovery may be stalling, and it demonstrates that people are not optimistic about their financial future. People who have low financial confidence are likely to spend less money, make fewer large purchases, and pay down less debt than people with high confidence. As a result, when consumer sentiment experiences a significant decrease, that is negative for the economy.”

Chip Lupo, WalletHub Analyst

Main Findings

Change in WalletHub Economic Index: October 2025 vs. October 2024

Likelihood of buying a home in the next 6 months|-17.6%
Likelihood of buying a car in the next 6 months|-16.6%
Confidence in having a job in 6 months|-9.6%
Positive sentiment about current employment opportunities|-7.4%
Likelihood of making a big purchase in the next 6 months|-5.6%
Positive sentiment about finances now|-5.1%
Positive sentiment about credit score in the next 6 months|-2.8%
Stress level about money now|+1.3%
Positive sentiment about debt levels in the next 6 months|+3.2%
Positive outlook on finances 6 months from now|+3.9%
Overall WalletHub Economic Index|-9.4%

Detailed Findings

• Year-over-year, consumers felt less confident about their financial outlook in October 2025, with the value of the overall index registered being over 9% lower than in October 2024.

• Decreasing financial optimism: In October 2025, consumers’ optimism about their finances recorded a decrease (-8.21%) from the previous month. Also, the level of optimism slightly decreased by over 5% over the past year.

• Increasing stress: Consumers’ stress levels regarding money are higher (+1.3%) in October 2025 compared to the same period last year.

• Increase in optimism: In October 2025, consumers’ optimism about whether their finances will improve in the next six months is higher (+3.9%) than it was last year.

• Less new employment opportunities: The share of consumers who feel new employment opportunities are “abundant” is lower (-7.4%) in October 2025 compared to last year.

• Weaker sense of job security: People’s confidence in having a job in the next six months is lower (-9.6%) in October 2025 compared to last year. This is the second-highest drop in the level of security sentiment registered since December 2020.

• Real estate popularity decline: Home-buying interest among consumers decreased by almost 18% in October 2025 compared to last year, marking the fourth-sharpest decline in interest on record since December 2020.

• Decreasing interest in auto purchases: The share of consumers who expect to buy a car in the next six months is nearly 17% lower in October 2025 compared to last year. This is the fourth-highest drop in auto interest recorded since December 2020.

• Large purchases are not a priority: In October 2025, consumers’ likelihood of making a large purchase in the next six months is almost 6% lower than it was last year.

• Increasing debt-reduction confidence: The share of consumers who expect to have less debt after the next six months increased by over 3% in October 2025 compared to last year.

• Credit score insecurity: The share of consumers who expect their credit score to increase in the next six months is lower (-2.8%) in October 2025 compared to last year.

Ask the Experts

In order to gain more insight into consumer attitudes during a difficult year, WalletHub turned to a panel of experts. Click on the pictures of the experts below to read their bios and responses to the following key questions:

1. Why is consumer confidence going down overall?
2. In what ways have the 2024 elections affected the financial decisions of households and businesses?
3. With the ongoing uncertainties in this economy, what steps can individuals take to protect their personal finances?

Ask the Experts

Patrick Bernet
Associate Professor, Management Programs – Health Administration - Florida Atlantic University, College of Business
Read More

Xiaoqing Eleanor Xu
Ph.D., CFA, Professor of Finance, Stillman School of Business; Co-Director, Master of Financial Technology and Analytics - Seton Hall University
Read More

Rajeev Singhal
Associate Dean, School of Business Administration - Oakland University
Read More

Dr. Kent Belasco
CPA, Director, Commercial Banking Program and Professor of Practice, Finance and Commercial Banking - Marquette University
Read More

Dr. Abdullah Al Bahrani
Associate Dean for Graduate Programs and Research, Professor of Economics, Haile College of Business - Northern Kentucky University
Read More

Thomas J. Chemmanur
Professor of Finance and Hillenbrand Distinguished Fellow, Carroll School of Management, Boston College
Read More

More Experts

Tips for Improving Your Confidence in Your Finances

• Budget carefully. Develop a comprehensive budget outlining your income, expenses and debts to make sure you fully understand your financial situation. Try to see what non-essential expenses you can cut out in order to put more money toward paying down debts or building your savings.
• Set up an emergency fund. Save a little money each month until you have enough to cover 3 to 6 months of expenses. This emergency fund acts like a financial safety net for unexpected costs.
• Pursue additional sources of income. Explore side jobs, part-time work, or freelance gigs to boost your income. You can even ask for a raise at your current job. Having multiple income sources not only makes you financially stronger but also boosts your confidence in making money.
• Educate yourself about personal finance. Take some time to understand more about personal finance by reading articles or taking classes. This will help you make better decisions and improve your financial situation.
• Try to save and invest a little bit every month. Having an emergency fund is a good first step. But once you’ve built that up, you should also start saving for big goals like homeownership, car purchases and retirement. Although you might not have a ton of money to put toward these goals, even small contributions add up over time. If you make it a habit, you'll be ready to save more when your financial situation gets better.

Methodology

The WalletHub Economic Index is based on a nationally representative online survey that WalletHub conducts monthly. There has been a total of over 13,100 respondents between December 2020 and October 2025.

WalletHub Economic Index Questions

Wallet General

1. 1. How do you feel about your finances right now?
      Pessimistic 1    2    3    4    5 Optimistic
   2. How will your finances look 6 months from now?
      Much Worse 1    2    3    4    5 Much Better
   3. How do you feel about money?
      Very Stressed 1    2    3    4    5 Not Stressed

Jobs

1. 1. How confident are you that you will have a job in 6 months?
      Not confident 1    2    3    4    5 Very confident
   2. How would you describe current employment opportunities?
      Limited 1    2    3    4    5 Abundant

Large Purchases

1. 1. How likely are you to buy a home in the next 6 months?
      Not at all likely 1    2    3    4    5 Very likely
   2. How likely are you to buy a new car in the next 6 months?
      Not at all likely 1    2    3    4    5 Very likely
   3. How likely are you to make a large purchase within the next 6 months?
      Not at all likely 1    2    3    4    5 Very likely

Wallet Specific

1. Will you have more or less debt in 6 months?
   More debt 1    2    3    4    5 Less debt
2. Will your credit score be better or worse in 6 months?
   Worse 1    2    3    4    5 Better