Consumer sentiment extended its recent retreat this week, led by worsening public ratings of the national economy and the buying climate alike.
The weekly Consumer Comfort Index is down 1.6 points this week and a total of 3.5 points from its pandemic high four weeks ago to a seven-week low of 54.7 on its 0-100 scale. That follows the largest monthly drop in a separate, forward-looking gauge of economic optimism in nearly 13 years last week.
The decline in the CCI, based on views of current economic conditions, comes amid recent turbulence in the U.S. stock market and substantial inflation as the economy reemerges from the pandemic.
The index’s decline is driven mainly by Americans’ ratings of the national economy, down 2.2 points this week and 6.2 points from their best of the pandemic four weeks ago, its largest one-month decline since January. The subindex stands at an eight-week low of 48.6, 18.5 points from its pre-pandemic level.
Among groups, worsening views of the national economy are led by Republicans, down 11.6 points, compared with a 6.9-point loss among Democrats and essentially no change among independents. They’re also down more sharply among women, homeowners and married people compared with their counterparts.
Ratings of whether or not it’s a good time to buy things are down 2.1 points this week – their largest weekly drop since July – after a month of stability. That puts the subindex at a seven-week low of 47.0, 3.7 points off its pandemic high in mid-June and 6.3 points from its pre-pandemic level.
The CCI’s third gauge, based on Americans’ assessments of their personal finances, is essentially steady this week but down 2.3 points in three weeks to an eight-week low of 68.5. This subindex is 2.5 points short of its pandemic high in late August, though about even with its pre-pandemic position.
The index overall is 8.3 points off its pre-pandemic level, about two-thirds of the way back from its unprecedented fall in spring 2020.