Survey respondents felt worse about both the current economic conditions, as well as the outlook for the near-term.
Consumer sentiment has been on a roller coaster throughout the pandemic, initially plummeting in the spring of 2020, then recovering in lockstep with the reopening, before it again declined amid the spread of the Delta variant that weighed on the economy in the summer.
“Consumers may misinterpret the [Federal Reserve]’s policy moves to slow the economy as part of the problem rather than part of the solution,” said Richard Curtin, chief economist at the Surveys of Consumers.
“The danger is that consumers may overreact to these tiny nudges, especially given the uncertainties about the coronavirus and other heightened geopolitical risks,” said Curtin.
This is a developing story. It will be updated.