Consumer Confidence Remains Volatile As All Four Sub-Indices Decline

“August’s LSEG/Ipsos Primary Consumer Sentiment Index finds that overall American consumer confidence remains in flux,” Johnny Sawyer of Ipsos states. “This month continues a five-month trend in which the index has alternated between significant gains and losses. Against the backdrop of the first rise in inflation in twelve months, as well
as rising gas prices, Americans show lower optimism in both their purchasing confidence and ability to invest in the future. Despite this month’s decline, however, consumer confidence remains significantly higher than it was at this point last year, just the second such instance since the start of the war in Ukraine.”

Jharonne Martis, Director of Consumer Research at LSEG, said, “Inflation is still a big concern. Over 50% of the retailers that have reported Q2 earnings have mentioned inflation during their earnings call. As a result, retailers are warning us not to expect too much from them. We’ve received more negative preannouncements for Q3 2023.”

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