Consumer sentiment sustained its largest one-week decline of the year this week, dropping to a six-month low and extending its largest multiweek decline since early in the coronavirus pandemic.
The Consumer Comfort Index fell 2.2 points this week alone for a cumulative loss of 7.0 points from its pandemic high six weeks ago, its biggest setback since May 2020, when it began fitfully climbing back from its unprecedented plummet at the start of the pandemic.
At 51.2 on its 0-100 scale, the index is its lowest since late March, albeit still 6.8 points better than at the start of the year. Its recent trend anticipated September’s employment report, with job growth its weakest of the year, and this week’s inflation report, with a 5.4 percent year-on-year increase in consumer prices. It aligns with the recent stock market slump and surging gasoline prices in particular. Employment, stock values and rising gas prices all are correlated with consumer sentiment.
Among the CCI’s gauges, Americans’ ratings of the national economy have slid the most, down 10.0 points from their pandemic high six weeks ago, including 2.6 points just this week; as with the full index, this is its largest sustained downturn since its pandemic recovery began. At 44.8, the subindex is its lowest since late March, though 10.8 points better than it started the year.
The CCI’s buying climate subindex is down 2.1 points this week and 6.4 points in four weeks to 43.5, similarly its lowest since mid-March. The decline nearly erases its gains this year, with the subindex just 2.4 points higher than its level in early January.
The index’s third gauge, based on Americans’ assessments of their personal finances, is down 1.8 points this week and 5.6 points from its 18-month high seven weeks ago. It’s at a two-month low, 65.4, after nearly reaching a 35-year high in late August.