Economic worries have consumers watching wallets
Consumer sentiment decreased by 5% in September across a broad range of the population, indicating that people are likely to curb their spending in the months ahead, according to a University of Michigan Institute for Social Research consumer survey published on Friday.
The survey found that people are concerned about weakening job markets and business conditions. They’re also worried about their own personal finances and see the potential to suffer from price increases and even to lose their jobs as the economy slows down.
“Weakening consumer views of labor markets are not necessarily a problem for consumer spending if they do not expect to be personally affected,” Joanne Hsu, who directs the university’s survey, said in a statement. “But in fact, responses to multiple survey questions all show that the financial outlook for consumers has deteriorated as well.”
The surveyors found that consumers are still feeling better than they were last spring, when the Trump administration first announced tariffs on a broad range of imported goods. Also, uncertainty about inflation and other concerns isn’t affecting the wealthy as much; sentiment held steady among people with large stock holdings.
Government won’t release key data during shutdown
If Democrats and Republicans don’t agree on a spending plan by Wednesday, the federal government is expected to shut down. Among the expected impacts will be a delay in access to important data on how the economy is doing.
“Economic data that are scheduled to be released during the lapse will not be released,” the U.S. Department of Labor said in a written document published on its website Friday.
One important report that could be affected if the government shutdown is prolonged include the monthly inflation report that’s supposed to come out on Oct. 15. That report is of great interest to the Federal Reserve board that is set to meet again in late October and views controlling inflation as central to its mission.
The Bureau of Labor Statistics, the labor department affiliate that issues that report, also would stop collecting data for active surveys, which the department said could affect the quality of future estimates.
Other potential impacts of an extended shutdown include delays in processing Federal Housing Administration loans and that could affect home sales, the nonprofit advocacy group National Housing Conference said Sunday on its website.