As consumers, we are a fickle bunch. Job prospects, high gasoline prices, rising interest rates, war in Ukraine, COVID-19 and politics are just some the headwinds faced by the largest share of the American economy — consumption.
In March, consumer confidence about the next six months fell to its lowest level in at least six years. The April data will be released on Tuesday in the week ahead. A further drop in future optimism should not be a surprise to investors.
After all, a separate survey showed waning economic cheeriness, but also included a hint of hopefulness. The University of Michigan Consumer Sentiment Index fell to a decade low last month. Yet, preliminary data from April indicates a sharp rebound in confidence, driven in part by gasoline prices falling from their recent highs.
