Consumer sentiment fell to a 10-year low in January, dragged by continuing concerns involving the Delta and Omicron variants of COVID-19.
Source: University of Michigan
The Index of Consumer Sentiment stood at 67.2 in January, down 4.8% from December 2021’s 70.6 and 14.9% lower than the 79.0 in January 2021. The latest level is the lowest since November 2011.
The decline was largely due to COVID-19 concerns, along with other issues involving supply chains and essential workers, which have caused a wage-price spiral no longer tied to prevailing conditions.
Current Economic Conditions stood at 72.0, down 3.0% from December’s 74.2 and 17.0% lower than 86.7 the previous year. The Index of Consumer Expectations fell to 64.1, down 6.1% from December’s 68.3 and 13.4% lower than January 2021’s 74.0.
Overall confidence in government economic policies fell to the lowest level since 2014.