2022 WalletHub Economic Index

The WalletHub Economic Index increased by roughly 6% between December 2020 and September 2022. This means consumers are significantly more confident about their financial outlook now than they were at the end of 2020.

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.

Main Findings

Change in WalletHub Economic Index: September 2022 vs. December 2020

Conservatives vs. Liberals

• Liberals had a larger overall increase in positive consumer sentiment than conservatives, jumping by 6.8% since December 2020 compared to 5.1% for conservatives.

Detailed Findings

• Consumers felt more positive about every component of the WalletHub Economic Index in September 2022 compared to December 2020.

• Consumers felt the highest level of optimism about their finances in August 2021 (an increase of 3.9% since December 2020). This year, consumers felt most optimistic in February; their optimism has decreased slightly in recent months, reaching in September 2022 its lowest point since March 2021.

• Consumers felt the least stressed about money in September 2021, registering a 6.6% decrease in their stress levels since December 2020. Between September 2021 and September 2022, consumers’ stress levels have risen slightly.

• Consumers’ positive financial outlook has been on an upward trend for several months, with more people feeling optimistic about their 6-month financial outlook in February 2022 than at any point is the previous 12 months. Expectations are only slightly below this peak in September 2022.

• Consumers started feeling significantly better about their current employment opportunities starting in April 2021, when their confidence level increased by over 2% compared to the previous month. Positive sentiment has continued to increase through September 2022, registering an 18% increase over December 2020.

• In February 2021, consumers started to gain confidence about whether they would have a job in the next six months. This increase has continued through September 2022.

• The likelihood that someone will buy a house within six months was consistent throughout 2021 and the first three-quarters of 2022, with all months registering an increase of at least 3.8% compared to December 2020.

• The likelihood of consumers buying a new car within six months has generally been on an upward trend, reaching its peak in September 2022, with an increase of 9% over December 2020.

• The likelihood of consumers making a large purchase within six months started increasing in February 2021 and reached its peak in March 2022, with consumers being about 6.3% more likely to plan a big purchase compared to January 2021, the month registering the lowest index value.

• In May 2022, we saw the highest level of consumer confidence regarding how much debt people will owe in six months. People feel only slightly less confident regarding this in September 2022, with the debt reduction likelihood index still registering a value of 5% higher than in December 2020.

• April 2021 registered the biggest month-over-month increase in positive sentiment about credit scores, with consumers being about 1.2% more confident compared to March that their credit score would increase in the following six months. The optimism levels registered were above the level of April 2021 through September 2022.

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 have 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 financially savvy?
4. When in the near future will it be a good time for consumers to start making large purchases?
5. What will the post-pandemic economy and job market look like?

Ask the Experts

J. Carlos Martinez
Faculty Economics – Dallas College
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Emily A. Goenner
Instructor of Business Communication, Marketing Department, Herberger Business School – St. Cloud State University
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Christine B. Whelan
Ph.D. – Director, MORE: Money, Relationships and Equality; Clinical Professor, Department of Consumer Science, School of Human Ecology – University of Wisconsin – Madison
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Audrey Guskey
Associate Professor of Marketing, Palumbo Donahue School of Business – Duquesne University
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Brad D. Carlson
Professor and James J. Pierson Endowed Chair in Marketing; President – Academy of Marketing Science, Richard A. Chaifetz School of Business – Saint Louis University
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Ronald Moy
Ph.D., CFA, CFP – Associate Professor of Economics and Finance, Tobin College of Business – St. John's University
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More Experts

Methodology

The WalletHub Economic Index is based on a nationally representative online survey that WalletHub conducts monthly. There has been a total of over 6,000 respondents between December 2020 and September 2022.

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