Americans Are Feeling Less Confident Than Ever About Their Own Finances

Americans Are Feeling Less Confident Than Ever About Their Own Finances
Carl Hazeley

over 1 year ago1 min

There are all sorts of organizations that check in on how everyday Americans are feeling about the economic backdrop, and this month’s data from a couple of them doesn’t bode well. The US Conference Board consumer confidence index hasn’t been this low since February 2021, which is down to a drop-off in how people are feeling about the short-term outlook for income, business, and labor conditions. The University of Michigan consumer confidence index, meanwhile, skips the wider business questions and focuses on how consumers are feeling about their own finances. Not great, apparently: the metric just hit its lowest reading ever.

Both measures add to a pile of evidence that suggests we’re headed for a more rapid US slowdown and dip into recession than most economists are forecasting. But keep in mind that it’s consumer spending, not sentiment, that drives the economy. And the Conference Board survey – which tracks some spending data as well – also revealed that Americans are continuing to spend their money. The trillion-dollar question now is how long that will last…

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