The number of customers who are financially healthy dropped to 32 percent, according to a recently J.D. Power report. The decline follows two consecutive months of improvement.
The Banking and Payments Intelligence Report is based on responses of 4,000, U.S. retail bank customers in May. J.D. Power measured the financial health of consumers by combining creditworthiness, their spending/savings ratio and safety net items such as insurance coverage. Consumers were then placed on a continuum from healthy to vulnerable.
Participants said they were worried their financial situation will worsen over the next three months because of government policies, inflation, personal debt, housing and job security.
A total of 70 percent said the cost of goods is increasing faster than their income. The percentage was higher among those considered vulnerable, 79 percent, and stressed, 84 percent, on the continuum. The percentage declined slightly among those considered healthy, 57 percent, and overextended, 58 percent.
When asked if their finances are at risk, 41 percent of participants said “yes.” Those considered stressed were the most concerned at 46 percent. Overall, this was a 3 percent decrease from the last survey.
Participants are most concerned about living expenses and managing household costs over the next three months.