A leading analytics and survey provider has recorded a slump in United States consumer confidence.
The Conference Board, a reputable source, has released information showing a decline in its consumer confidence index, according to its aggregated data.
Over 36 million consumers in America took part in the survey, and not all the information looks promising for 2024.
U.S. consumer confidence takes a hit
The Consumer Confidence Index shows that the rating of consumer trust in the market dipped to its lowest level since 2022 at 97.0. This is a slight decline from the previous month of 103.1 in March, but this lack of growth and a continued range means there is little hope for an improvement by the summer of 2024.
Dana M. Peterson, Chief Economist at The Conference Board, said of the dip, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation and more concerned about future business conditions, job availability, and income.”
According to the report, job conditions are openly favorable, but a struggling labor market has not been well received.
“According to April’s write-in responses, elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up,” Peterson continued.
As reported yesterday, the World Bank has also cautioned on the possibility of oil prices surging due to unrest in the Middle East. So, Peterson’s caution is a sign that Americans should tighten their belts.
According to previous indicators, if the Consumer Confidence Index registered below 80, this would signal the start of a potential recession and a rise in inflation.
“Average 12-month inflation expectations remained stable at 5.3 percent despite concerns about food and energy prices. Consumers’ Perceived Likelihood of a US Recession over the Next 12 Months rose slightly in April but is still well below the May 2023 peak.”
The American people are happy in their current workplace, but those out of work or looking for a change or challenge face a challenging task ahead of them — especially if there are no signs of economic improvement by 2024.
Image: Ideogram.
