The WalletHub Economic Index increased by over 9% between February 2024 and February 2023. This means consumers are more 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 9% increase in consumer sentiment over the past year is an encouraging sign that our economy is recovering from the damage it suffered as a result of the pandemic and inflation. People who have high financial confidence are likely to spend more money and reduce their debts, both of which are good for the economy as a whole.”
Cassandra Happe, WalletHub Analyst
Main Findings
Change in WalletHub Economic Index: February 2024 vs. February 2023
| Economic Index | Change |
|---|---|
| Positive sentiment about current employment opportunities | -6.2% |
| Positive sentiment about finances now | -1.4% |
| Stress level about money now | -0.9% |
| Positive sentiment about debt levels in the next 6 months | +0.2% |
| Positive sentiment about credit score in the next 6 months | +0.6% |
| Confidence in having a job in 6 months | +5.0% |
| Positive outlook on finances 6 months from now | +5.0% |
| Likelihood of making a big purchase in the next 6 months | +15.2% |
| Likelihood of buying a car in the next 6 months | +15.7% |
| Likelihood of buying a home in the next 6 months | +27.3% |
| Overall WalletHub Economic Index | +9.4% |
Detailed Findings
- Year-over-year, consumers felt more confident about their financial outlook in February 2024, with the value of the overall index registered being over 9% higher than in February 2023. At the same time, consumers’ overall sentiment has registered the second-highest level recorded since December 2020, with only December 2023’s topping it.
Overall
- Decreasing financial optimism: In February 2024, consumers’ optimism about their finances recorded an over 2% increase from the previous month. However, the level of optimism decreased by more than 1% in the past year.
How do you feel about your finances right now?
Note: The higher the value, the more optimistic people feel about their finances.
- Decreasing stress: Consumers’ stress levels regarding money are slightly lower (-0.9%) in February 2024 compared to the same period last year.
How do you feel about money?
Note: The lower the value, the less stress people feel about money.
- Increase in optimism: In February 2024, consumers’ optimism about whether their finances will improve in the next six months is higher (+5.0%) than it was last year.
How will your finances look 6 months from now?
Note: The higher the value, the more improvement people expect for their finances.
- Fewer new employment opportunities: The share of consumers who feel new employment opportunities are “abundant” is lower (-6.2%) in February 2024 compared to last year.
How would you describe current employment opportunities?
Note: The higher the value, the more abundant people think employment opportunities are.
- Stronger sense of job security: People’s confidence in having a job in the next six months is 5% higher in February 2024 compared to last year.
How confident are you that you will have a job in 6 months?
Note: The higher the value, the more confident people are that they will have a job.
- Real estate popularity rise: Home-buying interest among consumers increased by over 27% during the past year, while hitting the second-highest level recorded since December 2020, tailing just October 2023.
How likely are you to buy a home in the next 6 months?
Note: The higher the value, the more likely people are to buy a home.
- Increasing interest in auto purchases: The share of consumers who expect to buy a car in the next six months is almost 16% higher in February 2024 compared to last year.
How likely are you to buy a new car in the next 6 months?
Note: The higher the value, the more likely people are to buy a car.
- Large purchases are a priority: In February 2024, consumers’ likelihood of making a large purchase in the next six months is over 15% higher than it was last year, while topping all the values recorded since December 2020.
How likely are you to make a large purchase within the next 6 months?
Note: The higher the value, the more likely people are to make a large purchase.
- Slight increase in debt-reduction confidence: The share of consumers who expect to have less debt after the next six months is marginally higher (+0.2%) in February 2024 compared to last year.
Will you have more or less debt in 6 months?
Note: The higher the value, the more confident people are that they will reduce their debt.
- Credit score security: The share of consumers who expect their credit score to increase in the next six months is slightly higher (+0.6%) in February 2024 compared to last year.
Will your credit score be better or worse in 6 months?
Note: The higher the value, the more confident people are that they will increase their credit score.
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:
- Why is consumer confidence going up overall?
- In what ways has the recent banking crisis affected the financial decisions of households and businesses?
- With the ongoing uncertainties in this economy, what steps can individuals take to protect their personal finances?
Ask the Experts
Dr. Charles Chaffin
Author, Researcher, Professor and Co-Founder, Psychology of Financial Planning Programs; Professor of Practice – Iowa State University
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Author, Researcher, Professor and Co-Founder, Psychology of Financial Planning Programs; Professor of Practice – Iowa State University
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Meagan McCollum
Associate Professor of Finance and Director of Real Estate Programs in the Collins College of Business – University of Tulsa
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Associate Professor of Finance and Director of Real Estate Programs in the Collins College of Business – University of Tulsa
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Amit Bansal
Director, Center for Financial Health and Wellness, Spears School of Business – Oklahoma State University
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Director, Center for Financial Health and Wellness, Spears School of Business – Oklahoma State University
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Barry W. Evans
Associate Professor of Business, Northwestern - Alva – Northwestern Oklahoma State University
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Associate Professor of Business, Northwestern - Alva – Northwestern Oklahoma State University
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David Dubofsky
Retired Professor of Finance – University of Louisville and co-author of Your Total Wealth – The Heart and Soul of Financial Literacy
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Retired Professor of Finance – University of Louisville and co-author of Your Total Wealth – The Heart and Soul of Financial Literacy
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Peter Dadalt
Assistant Professor of Finance and Analytics – Susquehanna University
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Assistant Professor of Finance and Analytics – Susquehanna University
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More Experts
- Don’t go overboard for the holidays. The holidays can be expensive with gifts, parties, and travel. But don't feel the pressure to spend more than you can afford. The holidays are about being with loved ones, and you can have a festive time without going into debt.
- 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.
The WalletHub Economic Index is based on a nationally representative online survey that WalletHub conducts monthly. There has been a total of over 9,100 respondents between December 2020 and February 2024.
WalletHub Economic Index Questions
- How do you feel about your finances right now?
Pessimistic 1 2 3 4 5 Optimistic - How will your finances look 6 months from now?
Much Worse 1 2 3 4 5 Much Better - How do you feel about money?
Very Stressed 1 2 3 4 5 Not Stressed - How confident are you that you will have a job in 6 months?
Not confident 1 2 3 4 5 Very confident - How would you describe current employment opportunities?
Limited 1 2 3 4 5 Abundant - How likely are you to buy a home in the next 6 months?
Not at all likely 1 2 3 4 5 Very likely - 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 - 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 - Will you have more or less debt in 6 months?
More debt 1 2 3 4 5 Less debt - Will your credit score be better or worse in 6 months?
Worse 1 2 3 4 5 Better
WalletHub experts are widely quoted. Contact our media team to schedule an interview.