Over Half of Investors Believe Average Consumer Faring Better This Year

This week’s Sentiment Survey special question asked AAII members how they think the average consumer is faring relative to a year ago. More than half of respondents (53%) believe that the average consumer is doing better. Low unemployment, tax cuts and increased spending are all cited as reasons why. One-third of respondents (33%) think the average consumer is fairing about the same. These respondents view low levels of unemployment and tax cuts as being offset by stagnant wages. About 14% of respondents think the average consumer is faring worse because of tariffs, flat wages and higher expenses including health care and gas.

Here is a sampling of the responses: 

• “Consumers are doing better than a year ago. Jobs are available, but not as plentiful as three months ago. Consumer spending is strong, but with high levels of debt.”
• “Holiday spending is up from last year. The surviving stores are crowded with shoppers who are carrying packages. It would seem the average consumer is doing well and is confident of the future.”
• “Unemployment is down but there is still homelessness and an income distribution problem. If the average consumer owned stocks, they would be fine, but I do not think that is the case.”
• “Not well, consumers are increasing their debt to the danger point; just look at the delinquency rate on car loans.”

If you want to become an effective manager of your own assets and achieve your financial goals, consider a risk-free 30-day Trial AAII Membership