Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Consumer Confidence Drops Again

  by    0   1

Consumer confidence hit a 10-year low earlier this year and continues to sag as inflation squeezes wallets.

The Conference Board’s consumer confidence index for May slipped to 106.4. That was down from 108.6 in April.

The survey indicates consumers are reassessing their spending plans. The number of respondents planning to buy a motor vehicle over the next six months fell. Meanwhile, fewer Americans intended to buy major household appliances and durable goods such as refrigerators, washing machines, and television sets.

Americans are also starting to worry about the labor market. The labor market differential fell from 44.7 to 39.3. This indicates consumers perceive a softening jobs market.

This is not good news for a Federal Reserve relying on a strong labor market to prop things up as it fights inflation. It also indicates that average Americans aren’t buying the “strong economy” mantra.

But Reuters spun sagging consumer confidence as good news.

“We can never underestimate the US consumer,” Jennifer Lee, a senior economist at BMO Capital Markets in Toronto told Reuters. “But plans to pull back on purchases, and become a little more cautious, is something that the Federal Reserve would welcome as it aims to cool demand.”

The Fed may get more than it bargained for. Peter Schiff has been saying the US economy is likely already in a recession. In fact, the first-quarter GDP data already came in as a negative print.

I don’t think it’s going to be a mild recession” Schiff said. “I think this recession is going to be worse than the Great Recession that started following the 2008 financial crisis.”

Free Silver Report

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Investors Fleeing Housing Market as Bubble Deflates

In another bad sign for a housing bubble that is quickly deflating, investor purchases of single-family homes tanked in the third quarter. Meanwhile, overall home sales continue to tumble and prices are falling.

READ MORE →

Consumer Confidence Declines for Second Straight Month

The powers that be keep telling you that the economy is fine and inflation has likely peaked. But you’re not buying the story. Consumer confidence fell for the second straight month in November as worries about inflation and the trajectory of the economy persist.

READ MORE →

Recession Warning: US Small Businesses Struggling to Pay Rent

In another sign of a struggling economy, small businesses are having an increasingly hard time paying rent. According to Alignable’s November Rent Poll, 41% of US small businesses reported they couldn’t pay their rent in full and on time in November. That was a 4 percentage-point increase from the previous month.

READ MORE →

War on Cash: India Rolling Out Retail Pilot Program for Digital Rupee

We recently reported that the Federal Reserve plans to launch a 12-week pilot program in partnership with several large commercial banks to test the feasibility of a central bank digital currency (CBDC). The US isn’t alone in experimenting with digital currency. India is working on developing a digital rupee and recently announced the second phase […]

READ MORE →

China Likely Stockpiling Gold to Minimize Dollar Dependence

China is likely quietly stockpiling gold in a bid to further minimize its dependence on the US dollar.

READ MORE →

Comments are closed.

Call Now