Compared to a year prior, consumers are feeling more confident about their financial outlook, according to recent data from the WalletHub Economic Index.
The positive sentiment is evident across various aspects of consumer behavior, with increased interest in auto purchases and real estate.
Consumer Confidence
According to WalletHub, roughly 16% more consumers have expressed their intention to buy a car within the next six months compared to the same period last year. This heightened interest—particularly for a significantly big-ticket purchase such as a vehicle—illustrates a growing confidence in making significant investments.
Real estate is also growing in popularity, with home-buying interest seeing a 15% boost in December 2023 compared to a year prior.
Overall, consumers are planning to prioritize a significant chunk of their expenses on big-ticket items. In fact, “in December 2023, consumers’ likelihood of making a large purchase in the next six months is nearly 12% higher than it was last year,” noted WalletHub.
Additional Findings
While inflation and debt is top-of-mind for many, as evidenced by several studies, consumers polled by WalletHub noted they expect to have less debt over the next six months—which is 4.4% higher compared to those surveyed the previous year. Consumer confidence in reducing their debt reached the highest level recorded since December 2020.
It’s important to note that the data from WalletHub is just one reflection on the current state of the economy and consumer finances. That said, the positive trends highlighted—including increased auto, real estate, and overall big-ticket item purchases—suggests a resilient and confident consumer base heading into the new year.