The Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI) has launched the Labor, Income, Finances, and Expectations (LIFE) Survey and today published the first report in the quarterly series, which summarizes the latest survey results.
According to Bob Hunt, senior vice president and associate director of CFI, "The LIFE Survey is designed to be agile, so that CFI can gather timely information from consumers even when there are sudden, rapid, or unusual shifts in the economy."
The survey, which gathers data every quarter from a large cross-section of U.S. consumers, focuses on various aspects of consumers' financial lives. It includes questions about employment status, income, financial stability, concerns about the future, and changes in personal outlook.
The data from the first report of the LIFE Survey in January 2024 revealed some interesting insights:
- Respondents were more optimistic about their income prospects compared to the previous year, with one-third believing their income will increase.
- Nearly 70 percent of respondents reported using financial coping strategies in the last 12 months, with cutting discretionary expenses being the most common approach.
- Concerns about exposure to illness at work were expressed by about one in three employed respondents of working age.
- More than one-third of respondents are worried about making ends meet in the next six months, including some who are currently able to pay all their bills.
These findings will assist CFI in understanding how people manage their finances and how economic factors like credit markets and payment systems impact the overall economy.
CFI plans to release a new survey report and data tables each quarter, providing valuable insights into the changing dynamics of consumer finances.
For more information about the survey background, structure, and data, interested parties can refer to the detailed description available on the CFI website.
The Federal Reserve Bank of Philadelphia, which serves eastern and central Pennsylvania, southern New Jersey, and Delaware, plays a crucial role in formulating and implementing monetary policy, supervising financial institutions, and providing financial services to depository institutions and the federal government.
