A rare bit of good news about Millennials is out from IRI, which has been tracking spending sentiment for a couple of years now. Millennials (18-34), who have reported levels of frugality far beyond other age groups for quite some time, have shown an uptick in confidence in the past quarter. IRI’s Shopper Sentiment Index, which measures the economy’s impact on consumers and how they approach grocery shopping, improved to a score of 94 for Millennials, after staying flat at about 85 for the previous 5 quarters.
The index is based on a benchmark of 100 set in Q1 2011. According to the researchers, a score above 100 “reflects consumers that are less price driven, more loyal to favorite brands and better equipped to maintain their desired lifestyle without changes.”
The index overall (for all ages) improved from 103 in Q1 to 106 in Q2, its highest point since its inception.
Economic confidence on the part of Millennials drove those gains. 28% said they feel their financial situation has improved over the past year. Only 20% of those aged 35-54 and 16% of those aged 55+ concurred, though that could be the result of older age groups being more comfortable financially to begin with.
Millennials also hold a rosier outlook than others. 42% believe their financial position will improve over the next year, compared to 26% of those aged 35-54 and 17% of those aged 55+.
Are the results a sign of better things to come? They might also be an outlier. Time will tell.
