The consumer confidence index declined 1.4 points month-over-month to 113.8 this month. This can be attributed to concerns regarding surging COVID-19 omicron cases, 40-year high inflation rates, and other macroeconomic headwinds. Given omicron's high transmission rate even among the vaccinated, people have limited their outdoor activities, causing restaurants to suffer reduced patronage over the past few months.
In addition, the ongoing market correction and rising political tensions have caused consumers and economists to become bearish about the economic recovery. This is evident in a 4.6-point decline in the expectations index. Regarding this, FWDBONDS chief economist Christopher Rupkey said, "Consumers already think business conditions will not be as positive six months from now [as] before the stock market tumbled."
