Consumer financial optimism is trending positively upward this spring compared to last fall, according to a new report based on the Consumer Bankers Association (CBA)/AOL Finance Optimism Index.
The index, launched in April 2014, provides insight into the importance of financial optimism and how it influences consumer behavior and impacts the financial services industry.
Consumers are asked four questions, to which they must either strongly agree or disagree, or somewhat agree or disagree. The questions gauge consumer attitudes toward their personal financial future and current financial situation, whether the news they’ve been hearing about America’s personal finances is generally positive, and if they’re worried the current economic and political will affect their personal finances.
By February 2014, 68% of people agreed they were optimistic about their personal financial future, up from 64% last October and holding steady from January. However, the percentage of people who felt strongly optimistic declined from one quarter of respondents in January to 22% one month later.
Concern about current finances has also lessened. Last October, 66% of people reported being worried about their financial situation, dropping down to 59% by February 2014. Only 23% of respondents “strongly agree” that they’re worried about their current situation.
The percentage of people who are worried about the current economic and political situation and its impact on their personal finances dropped from 84% in October 2013 to 78% this February. Those strongly worried about the economy and political situation also fell during that timeframe from 41% to 35%.
View the CBA/AOL Finance Optimism Index report.
Written by Alyssa Gerace