Decline in Consumer Sentiment

Recent consumer sentiment data reveals a decline after three months of stability, primarily influenced by high living costs that overshadow positive job market perceptions. Although the drop in sentiment is not statistically significant and remains higher than two months ago, consumers express growing concern regarding inflation's slower-than-desired decline. Despite inflation expectations moderating, many consumers fear that high prices are diminishing their financial stability, prompting a heightened focus on economic conditions. Yet, they maintain a degree of confidence in the labor market, acknowledging its strength over recent years without significant concerns about unemployment.