Consumer Financial Health Records Largest Drop In Nearly 3 Years

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Measuring the financial health of the nation is key to understanding the current state of the consumer and predicting how they will react in the months ahead. The CivicScience Consumer Financial Health Index (CFHI) has a pulse on how U.S. consumers expect their personal financial situation to change in the next six months. Here’s what the latest data shows:

The financial health of U.S. consumers has seen significant fluctuations in recent months. After a sharp but brief decline following the presidential election, the consumer financial outlook surged to a 10-month high (64.69) after President Donald Trump’s inauguration. However, in the weeks that followed, it experienced its steepest drop in over a year, falling 3.09 points to a weekly average of 61.6 by mid-February.

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The recent sharp drop has pulled the monthly average down by 1.4 points, marking the steepest month-to-month decline since May and June of 2022. While the index usually climbs in January before slipping back down in February, this year’s sharper drop has pushed it to its lowest point since November 2023.

A deeper dive into the index’s components reveals savings outlook was a key driver in this most recent decline, falling by 2.13 points from January to mid-February. All other components of the index also fell, but credit outlook fell the least, with just a 0.5 point month-to-month drop. 

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The steep decline in consumers’ financial health outlook, coupled with another significant drop in economic sentiment, is very likely playing key roles in a similar recent drop in the Americans’ emotional-well being. As the post-election bump has waned, brands should note that consumers are feeling much less optimistic about the economy and their own financial outlooks. While a February drop in financial outlook isn’t a new pattern, this is the steepest one observed in years and now has Americans feeling a level of pessimism about their financial situation not experienced since 2023. Will this translate to significant spending/behavior shifts as the spring and summer travel season approaches?

How are your customers’ attitudes evolving amid the current economic environment? Discover how CivicScience data enables Fortune 500 clients to anticipate trends and maintain a competitive edge.