The average American started the summer feeling a strong sense of financial well-being, the American Institute of CPAs reported Thursday.
The AICPA’s index of personal financial satisfaction climbed to a new high of 27.7 in the second quarter, a 2.6% increase from the first quarter.
A record number of job openings and a rebounded stock market buoyed personal financial satisfaction even as interest rates rose, according to the report.
The PFSi is calculated as the Personal Financial Pleasure Index minus the Personal Financial Pain Index, with readings above zero indicating that Americans are feeling more financial pleasure than pain.
“A great job market is the perfect time for Americans to shore up their emergency fund, double check they’re making the most of their work benefits, and even consider shopping around to see if there is a better financial opportunity in their field,” Kelley Long, member of the AICPA’s consumer financial education advocates, said in a statement.
“In these times of increased market volatility, the best thing to do is stay the course, unless you’re near retirement. If that’s the case, then now is a great time to rebalance your portfolio to ensure you have adequate cash set aside, so that when the market does inevitably take a downturn, your retirement plans aren’t affected.”
The pleasure index, which comprises four equally weighted factors, each of which measures the growth of assets and opportunities, increased by 4% from the first quarter to an all-time high of 72.2.
The job openings per capita factor showed the most improvement, increasing 5.9 points to a new record of 76. The report noted that in May, the most American workers in 17 years left their jobs, indicating that more people appeared confident they could find a new job elsewhere, possibly at higher pay.
The PFS 750 Market Index rebounded from its first-quarter decline, rising 4.3 points to 89, a record high. This proprietary stock index comprises the 750 biggest companies trading on the U.S. market, adjusted for inflation and per capita. It remained the leading contributor to the pleasure index and to the PFSi overall.