Financial Stress Slightly Up In May

Financial Stress Slightly Up In May

The TIPP Financial Stress Index edged up by 0.9 points in May. The index is below its three-month moving average for the sixth month in a row, indicating its commitment to improvement.

Raghavan Mayur

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.

Relevance

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.