In spite of the fact that the economy is continuing to grow as it powers away from the days of COVID shutdowns, a preliminary November reading of consumer sentiment shows a dramatic drop to a 10-year low, as consumers fret about growing inflation. While economists have long warned that transitory inflation would be a temporary part of our overall economic recovery, consumers are clearly concerned that this inflation may be hanging around for a while and it is already crimping their lifestyle.
University of Michigan
New data from multiple sources are increasing economists concerns of an economic downturn within the next two years – perhaps even later this year. The latest readings on consumer confidence/sentiment and existing home sales show sharp downturns, sparking new debates on the real health of the economy.