Monday, August 30, 2010

America is in Financial Distress

For the quarter ended June 30, 2010, American households scored a 65.2 on the index’s 100-point scale, up from 65.0 in the first quarter of 2010, yet still below the score of 66.5 for the same period one year ago.

A score below 70 indicates a state of financial distress, and CredAbility’s index shows that the average U.S. consumer has been in financial distress for eight consecutive quarters.

For the first time, CredAbility is also releasing consumer distress scores for all 50 states and the District of Columbia. The agency says the second-quarter data reveals stark regional differences. Only nine states, primarily in the upper Midwest and Great Plains, achieved scores above the distress threshold of 70 points.

Among the states, Nevada posted the worst score on the index with at 59.23, while North Dakota had the best performance, with a score of 78.95.