Consumer confidence continues to come off its election-fueled sugar high from November, with the most recent reading hitting its lowest level since June. Confidence has dipped for a third straight month, while also missing economists’ expectations in each instance, highlights Bret Kenwell, US investment analyst at eToro.
Economic uncertainty remains elevated, whether around tariffs or more US-centric data like inflation or retail sales. As a reminder, the latest CPI report showed higher-than-expected inflation, failing to give investors and consumers the reassurance that price increases are slowing.
If there’s one silver lining in the consumer confidence report, it’s that last month’s figure was revised slightly higher. That fits into the trend we’ve seen over the past few quarters. However, this month’s lower reading is not surprising given some of the latest macro developments.
Investors should keep an eye on the latest PCE report. Not only is it the Fed’s preferred inflation gauge, but it will give another clue as to how consumers are feeling about their purchasing power. An in-line or lower reading may act as a relief catalyst for consumers and investors alike.
