CBA/AOL Index Reveals Consumers Still Weary on Future Health of Economy
Washington, D.C. – The Consumer Bankers Association (CBA) and AOL Inc. (AOL)
monthly Finance Optimism Index has found consumer’s finance optimism rose slightly in April to -4.8. The uptick is related to a decrease in concern surrounding their current financial situation, with 62 percent of all survey respondents in April stating they were concerned with their current financial situation. This is an improvement of 2 percent.
In addition, the latest survey results found positive news Americans have been hearing about the economy is generally low. Only 33 percent of respondents stated they had heard positive news about the economy. This would help explain why 79 percent of Americans surveyed say they are worried that the current economic and political situation will impact their personal finances.
Drivers of a lack of overall consumer optimism about their personal finances can be linked to a number of issues. Currently, consumers are facing unusually high grocery costs and gasoline prices which remain around $4 a gallon and have risen 12 straight weeks through April. This puts a squeeze on consumers who may be reevaluating summer vacation plans.
The Finance Optimism Index tracks optimism through agreement with 4 statements in a survey:
1. I am optimistic about my personal financial future.
2. I am worried about my current financial situation.
3. The news I’ve been hearing in the past few weeks about Americans’ personal finances has been generally positive.
4. I am worried that the current economic and political situation is going to affect my personal finances.
The Index is calculated as the percentage of respondents who are optimistic minus the
percentage of respondents who are pessimistic. Index values above 0 indicate more respondents felt optimistic than pessimistic, and Index values below 0 indicate more respondents felt pessimistic than optimistic. Survey questions are asked to a random national sample of approximately 1,600 U.S. Online Adults Ages 18+ every month in the AOL/Ipsos MediaCT Brand Tracking Survey.
Other indexes that track consumer sentiment focus on economic and business conditions, with less emphasis on how Americans perceive their own personal financial situation. The Finance Optimism Index differs in that it measures the level of financial optimism of individual Americans through their responses to four survey questions and explores factors that influence these attitudes.
The Index is measured continuously with results calculated and reported monthly at FinanceOptimism.org.
About CBA
The Consumer Bankers Association (CBA) is the trade association for today’s leaders in retail banking – banking services geared toward consumers and small businesses. The nation’s largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry’s total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.
About AOL
AOL Inc. (NYSE: AOL) is a brand company, committed to continuously innovating, growing, and investing in brands and experiences that inform, entertain, and connect the world. The home of a world-class collection of premium brands, AOL creates original content that engages audiences on a local and global scale. We help marketers connect with these audiences through effective and engaging digital advertising solutions.