September 2017 Consumer Attitudes

Consumers seemed to be marginally less happy in September than in August according to two popular surveys of consumer attitudes.  Consumer Confidence from the Conference Board dropped to 119.8 versus the downwardly revised count of 120.4 (originally 122.9) in August.  Data collected by the University of Michigan for Consumer Sentiment resulted in a reading of 95.1 compared to 96.8 a month earlier. 

Despite the monthly setbacks, consumer attitudes remain high.  Weakness in both reports stems from the two states impacted most by the recent hurricanes, Texas and Florida.  Folks in the Lone Star State and the Sunshine State were understandably concerned about their financial situation. 

Americans continue having high hopes for the future.  Those polled by the Conference Board believe income will keep growing as 20.5 percent anticipate higher pay and just 8.3 percent believe compensation will decline with the rest being unsure.  Expectations from those surveyed by the University are up 2.1 percent from a year ago despite the weather-related drop of 3.3 percentage points in the monthly tally.  Even with the relative optimism, inflation does not seem to be keeping consumers up at night.  Expectations for price increases remain rather low in both polls. 

Attitudes are thought to influence consumer behaviors.  Current levels for these measures are relatively high which should bode well in the months ahead for the economy since consumption comprises roughly 70 percent of America’s output.  With any luck, attitudes and economic growth levels will remain elevated.