Surveys of how consumers view the economy dropped in September in both the University of Michigan’s survey on consumer sentiment that was released on Sept. 26 and the Conference Board’s survey of consumer confidence that was released on Sept. 30.
These drops offer confirmation of what appears to be a longer-term downtrend in the outlook of consumers that will have implications for a business cycle already showing signs of fatigue.
Households are dealing with reduced labor opportunities and higher prices, pointing to the potential of lower household disposable income.
Now, with a government shutdown, household confidence is at risk of eroding further.
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