Financial Stress Inches Up In June

Financial Stress Inches Up In June

The IBD/TIPP Financial Stress Index for June indicates that the situation has not improved from last month. Here’s a look at what is driving up financial stress among Americans and who is feeling it most.

Raghavan Mayur

The Investor's Business Daily/TIPP Financial Stress Index increased for the second month in a row by 1.3 points or 2.3% from 57.7 in May to 59.0 in June. The previous increase in May was 0.9 points.  This month's reading of 59.0 is above the index's three-month moving average of 57.8, reflecting the underlying negative momentum.

Relevance

The IBD/TIPP Financial Stress Index is an accurate indicator of Americans' financial stress related to paying bills and making ends meet.

Two-thirds of the economy is driven by consumer spending.  When people are stressed, they are hesitant to spend money.

The index also tracks job-related tensions, which rise when the labor market is tough.