A major driving force in our great economy is the consumer. A confident consumer can be a powerful ally for our economy. Of course, the opposite side of that coin is when consumers have doubts about the state of the economy, it can have the opposite effect. We of course have a way of measuring consumer confidence in everything from retail sales to home buying to the personal savings rate.
In recent months, consumer confidence has been falling as inflation expectations have been rising. So, if inflation slows, does that mean the consumer will regain confidence? It’s possible, but other factors can influence consumer confidence, including perceptions of COVID-19.1,2
When the consumer does regain confidence, we may expect it to be a powerful force driving economic growth. Many may base the 2022 U.S. economic outlooks on a rebound in consumer confidence, leading to increased spending.3
In some ways, the only consumer confidence that matters is yours. Are you optimistic about 2022, or do you have concerns or doubts that are holding you back? Let us know. We would love to hear your thoughts.
1. SCA.ISR.UMich.edu, November 2021
2. Conference.Board.org, November 2021
3. MorganStanley.com, November 22, 2021
The forecasts or forward-looking statements about the 2022 economy are based on assumptions, subject to revision without notice, and may not materialize.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
The Power of the Consumer
December 20, 2021