Americans’ assessments of their personal finances and the buying climate rose again to new pandemic peaks this week, lifting the overall Consumer Comfort Index to its best since the onset of the pandemic.
Personal finance ratings have recovered fully from their pandemic losses, advancing to within sight of their record high in weekly data since December 1985. The rise – particularly steep among lower-income Americans the past month – coincides with record job openings and anecdotal evidence of retail, restaurant and hospitality companies offering wage increases and bonuses to attract workers.
The overall CCI is at a nearly 15-month high of 56.9, up 1.5 points in two weeks and 22.2 points from its pandemic low last May, recouping more than three-quarters of its total pandemic losses. It’s still 6.1 points short of its level at the onset of the pandemic and 10.4 points off its 20-year peak in January 2020.
The CCI’s personal finances subindex is up 1.6 points this week, up from a plateau the previous month. At 69.4, it’s just 1.8 points short of its record high in January 2020. Its gains the past month have come exclusively among Americans with annual household incomes less than $50,000.
The buying climate gauge, which asks Americans to assess whether it’s a good time to buy things they want and need “considering the cost of things today and your own personal finances,” also boosts overall sentiment. It’s up 2.2 points in two weeks to 50.7, a new pandemic high and just shy (-2.6 points) of its pre-pandemic level. It’s recovered from a brief mid-May dip, brushing aside inflation pressures.
The CCI’s third measure, based on Americans’ ratings of the national economy, is steady at 50.8, virtually unchanged from last week’s pandemic high. It lags the other two gauges in recovery, still 16.3 points short of its pre-pandemic level last March.