Confirmation of the Deterioration in Consumer Confidence
In our mid-quarter update, we highlighted the plunge in the University of Michigan’s consumer confidence indicator, suggesting that “good feelings” among consumers were starting to fade. Often surveys offer a leading glimpse into economic activity. A more confident consumer is more likely to make those big-ticket purchases, like homes and cars, as well as consuming more services.
Earlier this week, we got the latest reading of the Conference Board’s version of their consumer confidence indicator. It came in at 125.1, missing expectations of 133.2.
While consumer’s assessment of their present situation fell slightly, it was consumer’s expectations for the future that took a big hit.