Why is the Consumer Confidence Report Down?
Audio version available here:
Length: approx. 1 min. 10 sec.
Despite an incredible rise of nearly 5% in the United States’ GDP in the third quarter of 2023, consumer confidence has dropped. So much so, that the Conference Board’s Consumer Confidence Index report has reached its lowest point since May of this year, dropping to 102.6 in October. Why is this the case?
Well, in the face of record interest rates, inflation has slowed down just a bit. Rising prices for essential products such as groceries and gasoline have not. Add on domestic and worldwide political turmoil, and consumers fear a recession is on the horizon. However, while these fears push consumers away from high-ticket purchases like real estate, economic spending is currently strong.
Though it remains true that Americans are currently spending their money at higher rates, business owners should not become docile. 2023 has proven to be economically volatile, and with confidence at a low, consumers could decide to be uncharacteristically frugal in the coming months. To prepare, business owners should speak with a financial expert, like ours at XQ CPA. Our experienced professionals can help you gain the confidence you need with cashflow projections and financial models. Don’t hesitate, reach out today.
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