Consumer Confidence Is Dwindling

Glenn Minnis (The Center Square).

Consumers are now 13% less optimistic about their financial future than they were a year ago. The overall drop in optimism is the second-largest year-over-year decline over the past twelve months.

The WalletHub Economic Index’s monthly survey, which evaluates economic prospects based 10 components of consumer sentiment (including finances, purchasing plans, and employment opportunities), has provided the grim outlook.

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“The main factors that are making consumers feel less confident include increased stress about money in general and a lack of confidence regarding their finances,” Jill Gonzalez, a WalletHub analyst told The Center Square. “These are mostly due to high inflation and the overall difficult and unpredictable current economic conditions. Inflation is putting a serious strain on people’s budgets, forcing them to reduce their expenses to just the necessities and significantly lowering the likelihood of making a big purchase in the near future.”

Researchers also found that a greater number of people are less confident about finding a job within six months than they were a year ago. note Money stress is 15% more prevalent than it was in 2022.

All of the uneasiness comes as no great surprise, Gonzalez said, given all the recent twists and turns born in a volatile economy.

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Gonzalez said lawmakers have much work to do if they hope to allay any of the fears consumers now feel stemming from the way they view the country’s financial outlook.

“Right now, inflation is the main issue contributing to the decreasing consumer confidence in the economy,” She spoke. “The key thing that authorities should keep on doing is tackling this problem. Of course, this is not something that can be resolved overnight. But once inflation is under control, investments, consumer spending and business spending will increase and the overall perception on the financial outlook will improve.”

Syndicated with permission by The Center Square