The spending climate for consumers may be getting better, and it could signal that more consumers are taking care of their financial strategies.
The Consumer Spending Index, compiled by Deloitte, rose to 4.3 in June, which was an improvement from the previous level of 4.2. This was due to a number of factors, but mainly because of steady wages for consumers, on average. Another significant reason was the number of consumers not making unemployment claims, which could mean people are not only holding onto their jobs, but also working to secure their financial future.
“Strengthening housing and job markets can have a profound impact on consumers’ ability and willingness to spend,” said Daniel Bachman, senior U.S. economist at Deloitte. “Improvement has been slow but steady month to month, and both housing and employment have regained their footing since last year.”
However, even with improvements, there may still be some caution among young people regarding their personal finances. This could be due to a number of things, but many consumers may want to put the majority of their focus on their own money issues and how to solve them.
Some young people may be worried about their financial situation, as data from Consumer Reports noted that the trouble tracker rose to more than 39 in June compared to May’s level of 34. Despite this, it was still in positive territory, as it was less than 50.
Another aspect of the report showed that consumer sentiment did not rise or decline, and was at 52. This also was considered positive, as in this measurement, any figure higher than 50 signals that consumers are feeling good about their situation in a given month.