LinkedIn Top Voice. Economic analyst, survey maven, and trusted resource for Bankrate, Red Ventures, and beyond. Former president of two associations of journalists, The National Press Club and SABEW.
What’s going on inside the minds of consumers? The latest University of Michigan consumer sentiment survey indicates, broadly speaking, some weakening. It is important to differentiate between consumer attitudes and their behavior. In other words, what they’re thinking (collectively speaking) and what they’re doing (spending), may diverge and intersect in different ways. As for the latest snapshot, to be expected, elevated prices and political uncertainty are undermining consumer sentiment. The Univ. of Mich. index dropped from 69.1 to 66, an 8-month low. As Michigan’s Joanne Hsu put it, “Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating… With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy… There is little evidence that the first presidential debate altered their economic views.” Both assessments of the present and expectations declined. The Michigan data also found declining outlooks regarding inflation expectations. That is consistent with improving inflation data, albeit in an environment where prices are elevated. Between softening data on the job market, easing inflation pressures, and weakening consumer sentiment and spending, expectations are rising for an interest rate cut by the Federal Reserve in September. What are your thoughts regarding consumer sentiment and spending in the months ahead?
