The consumer financial health of the nation was in a free fall since the summer, with things looking the bleakest by the end of last month. But similar to economic sentiment and emotional well-being, the CivicScience Consumer Financial Health Index (CFHI) showed a major turnaround in November. Consumers reported significantly improved outlook on their income, credit, savings, and other key markers of financial health tracked by the index.
The month ended with a high note of 64.3%, the highest weekly average of the past year.
The monthly average for November climbed to 62.6%, just under the monthly averages from June and July of this year (63.3%).
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What’s behind the spike in financial health? As a living index, the CFHI tracks changing consumer outlook for the next six months by measuring a range of ‘always-on’ questions that span across five key financial areas: debt, income, savings, investing, and credit score.
In November, consumers reported increased outlook in all areas, with income and savings outlook seeing the biggest improvements.
Compared to today, a growing number of consumers expect in six months time to have:
- Higher income (rising 3.8 points to 64.9%)
- More money saved (rising 3.4 points to 62%)
- More in investments, including retirement savings (rising 0.5 points to 58.7%)
- Less debt (falling 2.1 points to 59.6%)
- Better credit score (rising 0.9 points to 68%)
Consumer financial outlook ebbs and flows throughout the year, typically rising at the end of the year. Last year’s end-of-year rise peaked in January at a monthly average of 63%.
Stay tuned for the next CFHI reading next month. Get in touch to learn how CivicScience can help your brand get ahead of consumer financial trends in 2024.
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