SAN RAFAEL, Calif. — American consumers are getting anxious again as news of a possible trade war between Russia and the United States is making headlines, according to new research.
The Money Anxiety Index, which had been improving as economic conditions brightened during a "promising" second quarter, is trending upward in the first week of August.
This signals an increase in the level of financial anxiety among consumers as a result of economic uncertainty over the conflict with Russia, according to Dan Geller, chief research officer of the index.
The August preliminary Money Anxiety Index increased to 72.7 after ending the second quarter with 71.6, the lowest level of money anxiety since the "Great Recession."
The increase since June reflects "growing concerns" among consumers about the financial and economic impact that the conflict with Russia over Ukraine will have on the U.S. economy, according to Geller.
"This heightened level of financial anxiety comes amid improving economic conditions in the U.S. in the second quarter of this year, which shows that the concern over the economic conflict with Russia is overshadowing optimism about the improving U.S. economy," according to Geller.
Russia announced a boycott this week of U.S. produce for one year, which has a potential total impact of $1.3 billion.
Additionally, Europe, which is a critical market for the United States, is starting to "crumble" economically, according to Geller.
Italy is "leading the way," falling back into a recession after experiencing two consecutive quarters of declining gross domestic product, according to Geller.
The Money Anxiety Index measures various economic indicators and factors associated with consumers' level of financial worry and stress. The index, which is updated at the beginning of each calendar month, consists of monthly measurements for more than 50 years, from January 1959 to date.
Historically, the Money Anxiety Index fluctuated from a high of 135.3 during the recession of the early 1980s, to a low of 38.7 in the mid-1960s. The 50-year average is 70.7 (July 1980 = 100).
