Almost four in 10 Americans were suffering financial stress in September 2013 and more than a third said they were worse off than they were five years earlier, a new Federal Reserve report on U.S. household finances showed Thursday.
One-fourth of respondents reported they were "just getting by" financially and another 13 percent said they were struggling to do so, the Fed said. Thirty-four percent were worse off financially than in 2008, 34 percent were about the same, and 30 percent were better off, according to the report.
"The survey found that many households were faring well, but that sizable fractions of the population were at the same time displaying signs of financial stress," researchers wrote. "For some, perceived credit availability remains low."
One-third of those who applied for credit were denied or given less credit than they requested, the survey showed. Twenty-four percent reported having education debt of some kind, with an average unpaid balance of $27,840.
The central bank said its Report on the Economic Well-Being of U.S. Households is a snapshot of financial and economic well-being of U.S. households to help monitor their recovery from the recession and "identify perceived risks to their financial stability." It aimed to gather household data not readily available from other sources.
The report prepared by the Fed Board's Division of Consumer and Community Affairs collected data from 4,100 respondents in September and October last year on housing and living arrangements, credit access and behavior, education and student loan debt, savings, retirement, and health spending.
As the economic recovery enters its sixth year, a number of factors help explain why many Americans don't feel better off: Income hasn't rebounded. Millions are working part time even though they want full-time jobs. It's taking longer to find work. People are still struggling with mortgage debt. Most people don't feel free to spend as much as they once did.
A new annual report released Thursday by the Commerce Department shows that consumer spending has soared since the recession ended in U.S. states with oil and gas drilling booms and has lagged in states hit especially hard by the housing market bust. The state-by-state report points to substantial shifts in the economy since the recession.
Spending jumped 28 percent in North Dakota, the largest gain nationwide, from 2009 through 2012, the latest year for which figures are available. It surged nearly 16 percent in Oklahoma. The next-largest increases were in South Dakota, Texas and West Virginia.
Spending was lowest in 2012 in Mississippi at $27,406. Arkansas was second-lowest at $28,366.
Information for this article was contributed by Christopher S. Rugaber of The Associated Press.
Business on 08/08/2014