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.
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.