ManyU.S. households find themselves in a fragile position financially,even in an economy with an unemployment rate near a 50-year low,according to a Federal Reserve survey.

The Fed's 2018 report on the economic well-being of households,published Thursday, indicated “most measures” of well-being andfinancial resilience “were similar to, or slightly better than,those in 2017.” The slight improvement coincided with a decline inthe average unemployment rate to3.9 percent last year, from 4.3 percent in2017.

But despite the advance, the results of the 2018 surveyindicated that almost 40 percent of Americans would stillstruggle in the face of a $400 financial emergency. The statistic, which was abit better than in the 2017 report, has become a favorite rejoinderto U.S. President Donald Trump's boasts about a strong economyamong Democratic politicians, including 2020 presidential candidateKamala Harris, the U.S. senator from California.

Related: The top financial concern for workers: Emergencyexpenses 

“Relatively small, unexpected expenses, such as a car repair orreplacing a broken appliance, can be a hardship for many familieswithout adequate savings,” the report said. “When faced with ahypothetical expense of $400, 61 percent of adults in 2018 say theywould cover it, using cash, savings, or a credit card paid off atthe next statement,” it added.

“Among the remaining 4 in 10 adults who would have moredifficulty covering such an expense, the most common approachesinclude carrying a balance on credit cards and borrowing fromfriends or family,” according to the report.

Based on a survey of 11,000 people in October and November 2018,the report showed a quarter of Americans don't feel like they aredoing “at least OK” financially. That number was higher for blackand Hispanic Americans, at roughly one third for both. For thosemaking less than $40,000 a year, the share who felt they weren'tdoing well was 44 percent.

“We continue to see the growing U.S. economy supporting mostAmerican families,” Fed Governor Michelle Bowman said in a pressrelease accompanying the report.

“At the same time, the survey does find differences acrosscommunities, with just over half of those living in rural areasdescribing their local economy as good or excellent compared totwo-thirds of those living in cities,” Bowman said. “Across thecountry, many families continue to experience financial distressand struggle to save for retirement and unexpected expenses.”

Read more: 

• Financial pain: Where Americans stand so far thisyear
• For better retirement outcomes, improve emergencysavings: Prudential's Phil Waldeck
• 2019 market outlook: Slower growth, but norecession, says Vanguard

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