Consumer Confidence Slips on Downbeat Outlook

Source: Economics Group of Wells Fargo Bank, N.A. Summary Inflation may be slowing, but consumers remain downbeat about the future. A 5.6 point drop in expectations caused the Consumer Confidence Index to slip in January, and the gap between current and coming conditions speaks to consumers’ fear of recession. Confidence Gap Shows Recession Fear Consumer optimism remained under pressure in January. The Consumer Confidence Index slipped to 107.1, which is above the prior six-month pace of 103.7 but still well-below the levels that prevailed pre-pandemic. There are a number of cross currents impacting consumer perceptions today, but the gap between consumers’ views of current and coming conditions remains particularly wide and emphasizes consumers’ fear of recession (chart). READ FULL ARTICLE>>