Joanne Hsu, Director of Surveys of Consumers at the University of Michigan, shares her insights on the striking disconnection between consumer sentiment and resilient economic data. She discusses how anxieties about trade policies and job security shape perceptions of personal finances. John Llodra, lead partner at New Harbor Financial, highlights the impact of consumer sentiment on financial strategies and investment decisions. The conversation dives into inflation concerns, navigating market emotions, and the importance of informed financial planning in uncertain times.
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insights INSIGHT
Pervasive Consumer Worry in 2025
Consumer sentiment has been declining for months due to worries across business conditions, personal finances, income growth, unemployment, and stock market performance.
These pervasive worries signal broad anxiety about the economy's near-term future.
insights INSIGHT
Sentiment Leads, Hard Data Lags
Hard economic data is backward looking, while consumer sentiment is forward looking, explaining current discrepancies.
Recent strong consumer spending was driven by front-loading purchases to avoid future price increases, not by economic strength.
insights INSIGHT
Affluent Consumers Show Sharp Sentiment Drop
High-income consumers showed the sharpest drop in sentiment, crucial because they contribute most to aggregate spending.
Their declining confidence and spending could significantly impact the overall economy.
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