The Consumer Comfort Index held near last week’s pandemic peak this week, with each of its gauges similarly holding near pandemic-era highs. Americans’ assessments of their personal finances are particularly high, nearly matching their best in 35 years of weekly data.
In its third week without a significant shift, the CCI is 57.9 on its 0-100 scale, virtually matching last week’s 58.2. It’s steadied after surging 6.7 points from mid-July to late August, bouncing back from a midsummer dip despite economic uncertainties caused by the Delta variant. It’s just 5.1 points short of its pre-pandemic level.
The index’s three gauges, based on Americans’ ratings of their personal finances, the buying climate and the national economy, all are steady this week, each about even with its pandemic-era peak:
- The CCI subindex based on Americans’ ratings of their personal finances is at an exceptionally high 70.8, fully recovered from its pandemic losses and nearly matching the record 71.2 in January 2020. There may be downward pressure ahead; interviews were conducted before the official expiration of enhanced unemployment benefits Monday.
- The buying climate subindex is unchanged at 49.4, about even with its pandemic best of 50.7 in mid-June. It’s a broad 20.6 points better than its six-year low last May, now just 3.9 points short of its pre-pandemic level.
- The national economy gauge, steady at 53.5, is just off last week’s pandemic high of 54.8. It’s regained 31.0 points since its five-year low in May 2020, though remains 13.6 points off its pre-pandemic level.
The latest reading comes amid economic crosswinds. Unemployment in August fell to 5.2 percent, a low since March 2020, even as the pace of job creation underperformed expectations. Americans are facing rising consumer prices, up 5.4 percent in the year ending July, the largest increase in nearly 13 years. And the stock market, a close correlate of consumer views, has performed strongly in the year to date.
Further, partisan divisions are widening. The CCI among Democrats is up 10.3 points in a month to 67.8, a new 19-year high. There’s been essentially no gains among Republicans and independents during this time, steady at 58.2 and 49.9, respectively.