Consumers feel over 5% less confident about their financial outlook this month than they did one year ago, according to the latest WalletHub Economic Index, released today.
The WalletHub Economic Index is based on a monthly survey that evaluates economic prospects based on 10 components of consumer sentiment. These components revolve around how people feel about their finances, purchasing plans and employment opportunities.
Key Stats
- Decreasing debt-reduction confidence: The share of consumers who expect to have less debt after the next six months decreased by almost 13% in October 2026 compared to last year. At the same time, this is the lowest index value recorded since December 2020.
- Credit score insecurity: The share of consumers who expect their credit score to increase in the next six months is over 8% lower in October 2026 compared to last year, registering the lowest level since December 2020.
- Large purchases are not a priority: In October 2026, consumers’ likelihood of making a large purchase in the next six months is over 6% lower than it was last year.
- Decreasing interest in auto purchases: The share of consumers who expect to buy a car in the next six months is almost 5% lower in October 2026 compared to last year.
- Real estate popularity decline: Home-buying interest among consumers decreased by over 4% in October 2026 compared to last year.
“The over 5% decrease in consumer sentiment over the past year is a worrying sign that our economic recovery may be stalling, and it demonstrates that people are not optimistic about their financial future. People who have low financial confidence are likely to spend less money, make fewer large purchases, and pay down less debt than people with high confidence. As a result, when consumer sentiment experiences a significant decrease, that is negative for the economy.”
- Chip Lupo, WalletHub Analyst
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