Middle-income households stuck in a deeper financial hole

Financial woes are only worsening for middle-income Americans living in the West, according to an index calculated by Consumer Reports.

Problems such as job loss and high prices have especially plagued households earning between $50,000 and $99,000 a year, which reports of difficulties jumping 12.4% last month. High-income families said they suffered a 2.4% increase in such money-related hurdles.

While the so-called Trouble Tracker index declined in the Northeast and South, financial problems increased 8.4% in the North Central region and a whopping 27.9% in the West.

Americans said that the inability to afford medications or cover medical bills was their top concern. The employment market isn’t helping – Consumer Reports found that the economy has lost more jobs than it’s created for the last two months.

On Tuesday, the International Monetary Fund warned of an “alarmingly high� risk of a serious global slowdown due to fiscal issues in the U.S. and Europe, downgrading its forecast for economic growth.

“Our numbers suggest the core of the problem remains a weak employment picture, which results in falling consumer confidence levels,� said Ed Farrell, director of consumer insight at the Consumer Reports National Research Center, in a statement. “Without a substantial improvement in the jobs outlook, it is unlikely that consumers will have the inclination to spend.�

But for now, that’s not the case. Retail spending was up in September after four months of declines, along with purchases of homes and new cars.

Small-business owners, while still pessimistic, said for the first time in a year and a half that they’re expecting better business conditions over the next six months.

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