Driving below the overall level was a sharp drop in consumer expectations for the next six months. According to the report, the expectations index fell from 73.7 to 66.4 – the lowest level in nearly a decade.
“The grim outlook of consumers was driven by growing concerns about inflation, particularly rising gas and food prices,” Lynn Franco, senior director of economic indicators for the conference board, said in a statement. “Expectations are now well below a reading of 80, which suggests an increased risk of a recession through the end of the year, along with weak growth in the second half of 2022.”
However, consumer sentiment about the current economic conditions dropped marginally.
Cathy Bosjanic, chief US economist at Oxford Economics, told CNN Business: “The more cyclical current conditions index had outperformed as the labor market still remains strong and electricity consumer spending in the near term despite rising interest rates and high inflation.” should do.” Via email.
Despite confidence levels trending in the zone of pessimism, and reaching the lowest readings since February 2021, the index is higher than during the pandemic and well above the crisis of the Great Recession.
This story is developing and will be updated.