Consumer Confidence Takes a Hit
The American consumer’s outlook has taken a surprising turn for the worse this month, with a growing sense of unease about the economy’s prospects in the new year. A key sentiment index published by the Conference Board has dropped 8.1 points to 104.7, defying expectations of an increase.
Economic Anxiety on the Rise
The expectations index, which gauges consumers’ near-term confidence in income, business, and the jobs market, has fallen 12.6 points to 81.1. This decline brings the index close to the level often associated with recession, according to the Conference Board.
A Rebound Cut Short
The recent upswing in consumer confidence has been short-lived, with the index now back in the middle range that has prevailed over the past two years. This shift is a cause for concern, as it may signal a more widespread economic downturn.
Expert Insights
“The December decline in consumer confidence is a clear indication that the economy is still facing significant headwinds,” said Dana M. Peterson, chief economist at The Conference Board. “As we move into the new year, it’s essential to keep a close eye on consumer sentiment, as it can have a profound impact on the overall economy.”
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