US consumer sentiment dropped 4.8% to 67.2 in January, decreasing 14.9% year over year.
- The gauge of current economic conditions dropped 3.0% to 72.0, falling 17.0% year-over-year.
- Richard Curtin, chief economist Survey of Consumers, stated the current slump was due to two sharp declines separated by an interval of rising optimism.
- Curtin further stated that the initial steep decline occurred in two months, a 28.9% fall in optimism from February to April 2020 due to a slowdown in the economy.
- The index of Consumer Expectations dropped 6.1%, falling 13.4% year-over-year.
- Confidence posted an equally strong bounced back starting late-2020, surging 23.0% by April 2021. The upward trend was reversed over the last nine months, with the Sentiment Index dropping by 23.9%.
Overall confidence in government economic policies is at its lowest point since 2014, and the major geopolitical risks might add to the pandemic-driven challenges.
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Source: Surveys of Consumers