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A study published in Dec. by WalletHub found that consumers were “less confident about their financial outlook” in Dec. 2024 compared to Dec. 2023.
WalletHub’s data is based on a monthly survey that looks at 10 different components of consumer sentiment, such as how people feel about their finances, their purchasing plans, and employment. “The 4% decrease in consumer sentiment over the past year is a worrying sign that our economic recovery may be stalling, and it demonstrates that people are not optimistic about their financial future,” WalletHub analyst Chip Lupo said in a statement accompanying WalletHub’s data.
Post-Election Upsides
After the Nov. 2024 election, consumer’s optimism rose significantly (+4.5%) from the previous month, but this only led to an overall 1% increase compared to the same time in 2023. Stress levels were also lower in Dec. compared to the same period in 2023. (TAKE A POLL: Do You Usually Stay Home For New Year’s Eve?)
On the other-hand, “consumers’ optimism about whether their finances will improve in the next six months is lower (-8.2%) than it was last year,” WalletHub wrote in the analysis. Home-buying interests also decreased by 9%, but interest in buying a new car in the next six months is higher.
It seems that people are conflicted about how they feel 2025 is going to play out for them, even if confidence was down overall in Dec. ” Put simply, consumers feel the persistent inflation and bad labor market,” said Associated Research Professors at Arizona State University and CEO/Founder of Dainamic Banking, Christos Makridis said in regards to consumer sentiment.
“When consumers see banks in trouble, that creates even more concern and anxiety because banks are the custodians of our assets—supposedly the safest entities in the nation. I have done some survey research on perceptions about banking stability, and it seems that the greatest concern is among regional banks. That is also consistent with my own experience: regional banks are often somewhat exposed to niche risks (e.g., Silicon Valley Bank) but are not completely willing to undertake the investments to proactively manage that risk,” he added. (TAKE A POLL: Do You Enjoy Traveling During the Holidays?)
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