SAN FRANCISCO, Calif.—November’s 3.5% increase in orders of durable goods indicates that consumers’ financial anxiety is declining.
“Business and financial people should pay close attention to consumers’ level of financial anxiety” said behavioral economist Dan Geller. “Doing business with consumers without knowing their financial mood is like going sailing without checking the weather forecast first.”
Geller explained that consumers have been on a “durable diet” since the start of the Great Recession. He said the increase in durable goods orders in November corresponds to the improvement in consumers’ level of financial anxiety reported by the Money Anxiety Index
During the Great Recession, consumption of durable goods decreased by 16.3% from $1,210 billion to $1,012 billion, noted Geller, as consumers prolong the use of their durable and most expensive items during times of high financial anxiety.
