Consumer Sentiment Drops to Lowest Level in 2 Years
January 21, 2019
Fears of an economic slowdown have U.S. consumers feeling less confident. The University of Michigan’s consumer sentiment index fell to 90.7 this month, down from 98.3 last month. This marks the lowest level since October 2016. Economists had expected a much smaller drop to 96.4.
The index tracks consumers’ feelings about their current or near-future personal finances and spending, business conditions, and the overall health of the economy. The Survey of Consumers noted that decline was caused by the government shutdown, uncertainties about tariffs, volatility in the securities markets, and prospects of a global financial slowdown.
The survey also showed that consumer’s outlook for the year ahead was the lowest it has been since the middle of 2014.