2021 WalletHub Economic Index

The WalletHub Economic Index increased by nearly 5% between December 2020 and May 2021. This means consumers are significantly more confident about their financial outlook now than they were at the end of last year.

The WalletHub Economic Index is 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.

Key Stats

• Consumers felt more positive about every component of the WalletHub Economic Index in May 2021 compared to December 2020, with confidence levels rising by 2.9% or more for each component.
• In February, consumers started to gain confidence about whether they would have a job in the next six months. This increase has continued through May.
• In March, consumers felt the most confident that their debt level would decrease over the following six months. Their confidence has continued to increase through May.
• Consumers felt significantly better about their employment opportunities starting in April, with their confidence level up by over two percent compared to the previous month. This positive sentiment has continued to increase through May.
• Conservatives had a larger overall increase in positive consumer sentiment than liberals, jumping 5.8% since December compared to 4.1% for liberals.

Main Findings

Change in WalletHub Economic Index: May 2021 vs. December 2020

Conservatives vs. Liberals

Detailed Findings

Note: The higher the value, the more optimistic people feel about their finances.

Note: The lower the value, the less stress people feel about money.

Note: The higher the value, the more improvement people expect for their finances.

Note: The higher the value, the more abundant people think employment opportunities are.

Note: The higher the value, the more confident people are they will have a job.

Note: The higher the value, the more likely people are to buy a home.

Note: The higher the value, the more likely people are to buy a car.

Note: The higher the value, the more likely people are to make a large purchase.

Note: The higher the value, the more confident people are that they will reduce their debt.

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:

1. How has consumer spending habits changed during this last year?
2. What tips do you have for consumers looking to improve their finances?
3. Have the pandemic economic struggles encouraged Americans to become more credit scores be explained?
4. Has the vaccination rollout and the reopening of businesses increased consumer’s economic confidence?
5. When in the near future will it be a good time for consumers to start making large purchases?
6. What will the post-pandemic economy and job market look like?

Methodology

The WalletHub Economic Index is based on a nationally representative online survey that WalletHub conducts monthly. There has been a total of 6,010 respondents between December 2020 and May 2021.

WalletHub Economic Index Questions

Wallet General

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

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

Large Purchases

6. How likely are you to buy a home in the next 6 months?
   Not at all likely 1 2 3 4 5 Very likely
7. 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
8. 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

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

Demographic

Do you lean more liberal or conservative in your political views?
Liberal
Conservative