Consumer Economic Sentiment Collapses To Historic Low
Overall consumer economic sentiment dropped 1.4 points to 40.1, according to the HPS-CivicScience Economic Sentiment Index (ESI), tying with March 2020 for the lowest recording in ESI history.
Confidence in making a major purchase fell drastically, declining 6.2 points to an all-time low of 25.1, amid supply chain problems that have exacerbated price increases for larger items, including vehicles and televisions. Meanwhile, consumer prices rose 5.4% in September, global energy prices soared to their highest levels in years, and the Federal Reserve has indicated growing concerns about lasting inflation and supply chain issues. For the second ESI reading in a row, confidence in the overall U.S. economy reached a record low, falling 0.9 points to 34.6. Here’s how the other indicators moved:
– Confidence in finding a new job rose 0.6 points to 56.5
– Confidence in personal finances remained at 54.3
– Confidence in the housing market fell 0.9 points to 29.8
The ESI’s three-day moving average began at 40.6 on October 13. It reached its high of 42.9 on October 18 before falling again, hitting its low of 38.8 on October 23. It closed at 39.2 on October 26.
The next ESI release will be Wednesday, November 10.