Following a 4.9-point improvement in April, the TIPP Financial Stress Index edged up by 0.9 points in May. Nonetheless, the index is below its three-month moving average for the sixth month in a row, indicating that it is committed to improving.
The 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.