The Conference Board's consumer confidence index fell 6.7 points to 81.9 in September, its lowest in 12 years. Jobs data out the same day held steady. The drop traces to fuel and prices, and those are what a spending forecast built on labour figures alone misses.
Reality
- Evidence70
- Adoption
- Not scored
- Hype gap+5
- Incentives
- Not scored
- Confidence65
Americans call today's business conditions bad for the first time since September 2024
Americans' confidence fell 6.7 points to 81.9 in September on the Conference Board index, with more calling present business conditions bad than good. Two years of worry about the outlook now extend to how households grade today's economy and their own finances.
Reality
- Evidence60
- Adoption
- Not scored
- Hype gap+15
- Incentives
- Not scored
- Confidence60
The Fed hiked what it pays on reserves into a bond market already heading for 5%
American Banker's column treats last week's increase in the rate the Fed pays on bank reserves as a move on perceptions. It also says central banks now look like they are following the bond market.
Reality
- Evidence34
- Adoption
- Not scored
- Hype gap+26
- Incentives62
- Confidence41
Consumers now judge today's economy as harshly as next year's
The University of Michigan's August survey puts sentiment at 51.7 with declines in every political group, and the current-conditions reading has fallen far enough to close its usual gap with expectations.
Reality
- Evidence64
- Adoption
- Not scored
- Hype gap−10
- Incentives35
- Confidence55
The 20-year is the constraint, and it is clearing at 5.26 percent
A July auction took $13bn at 5.163% with bid-to-cover of 2.64, dead on the ten-auction average. Duration keeps getting bought, just never at a better price.
Reality
- Evidence33
- Adoption
- Not scored
- Hype gap+18
- Incentives
- Not scored
- Confidence29
Only 8% of Americans expect income to beat inflation, and pricing power is the casualty
The University of Michigan's share of consumers expecting income to outpace inflation has fallen from 18% in December 2024 to 8%. Plans that assume full cost pass-through look fragile.
Reality
- Evidence28
- Adoption
- Not scored
- Hype gap+38
- Incentives48
- Confidence30