When there’s fewer items in your grocery cart, but the bill is higher than the previous week’s, people grow somewhat skeptical of the “everything’s great” narrative. From Michael Maharrey at schiffgold.com:
The Fed people insist the economy is strong. They upped their GDP growth projections at their last meeting. Joe Biden thinks the economy is strong. He keeps bragging about the marvelous achievements of “Bidenomics.” Mainstream economists keep telling us the economy is strong.
But the average American isn’t buying any of it. (Perhaps price inflation makes it too expensive?)
After tanking in August, consumer confidence dipped again in September, falling to the lowest level in four months.
The Conference Board’s Consumer Confidence Index fell to 103.0 this month from an upwardly revised 108.7 in August. That was worse than the consensus projection of 105.5.
People’s expectations for the future continue to tank. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 73.7 in September. That follows a plunge to 83.3 in August.
An Expectations Index below 80 generally signals an impending recession.
Americans also continue to fret about rising prices, despite assurances from Paul Krugman who recently insisted the inflation war is over.
