Consumer Confidence Up, Savings Not [AUDIO]
“Consumers’ feelings on the economy tend to mirror what we see in the economy,” said Gregory McBride, senior financial analyst for Bankrate.com. “When the economy is improving, the job market is improving, people are feeling wealthier and they’re feeling better about their financial security.”
However, the one area in which respondents didn’t feel more confident was personal savings. McBride said savings has been an Achilles heel for consumers, and has been polling negative since 2010.
“That’s a recognition of the fact that consumers know they don’t have nearly enough saved for a rainy day, and perhaps worse, they don’t feel like they’re making any headway in that area,” McBride said.
McBride did point out this was the least negative reading for savings, and he expects it to start turning around once wages start to increase.
“At a point when households see some tangible income growth, that’s when they are in a position to not only ramp up their discretionary spending, but their saving too,” McBride said.