Sentiment Spooked by Recent Developments

Source: Economics Group of Wells Fargo Bank, N.A. Summary Consumer sentiment slipped by the most in just over a year in early October. Given recent developments including the Israel-Gaza conflict, congressional budget drama and removal of the Speaker of the House, as well as continued labor strikes, we’re not surprised sentiment soured. You’re Doomed if You Stay Here Consumers have been downbeat pretty much since the start of the pandemic in early 2020, and recent developments caused sentiment to slip for the third consecutive month. At 63.0, overall sentiment is now at its lowest point since May (chart). Consumers were less optimistic across the board, with views of both current conditions and expectations declining. The current conditions index tumbled to 66.7 from 71.4 in September. The future expectation index fell to 60.7 from 66.0 a month prior. While both remain well-above recent lows, they are still a ways below where they stood prior to the pandemic (chart). READ FULL ARTICLE >>