The Index of Consumer Sentiment as measured by the University of Michigan is like the temperature in Michigan right now: Low. Specifically, the number is 67.2%. According to Dr. Richard Curtain, chief economist for the study, this is the “lowest level since November 2011.” And if that’s not enough to disturb your Monday morning, here’s more from Curtain: “Overall confidence in government economic policies is at its lowest level since 2014, and the major geopolitical risks may add to the pandemic active confrontation with other countries.
“Although the primary concern is rising inflation and falling real incomes, consumers may misinterpret the Fed’s policy moves to slow the economy as part of the problem rather than part of the solution.”
Note: It comes back to messaging. While there has been solid economic growth and increases in employment, the messaging from not only the White House but Congress has been weak at best. Go to a grocery store and see entire sections of shelves with nothing on them and that’s what the everyday American uses to calibrate what’s going on. Go to a car dealership and see the salesperson with an even more-smug look on his or her face than they did pre-pandemic because they know that anyone who wants a vehicle is going to be paying sticker — and likely more. That’s what average Americans are up against.
--Gary S. Vasilash
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