Bloomberg HT Consumer Confidence Index Plunges in September

Summary:

The Bloomberg HT Consumer Confidence Index fell sharply in September, dropping 5.8% to 68.34. While consumer perceptions of current conditions and future expectations worsened, spending appetite for durable goods, cars, and housing showed a notable increase.

Confidence Index Falls

Bloomberg HT reported that its September Consumer Confidence Preliminary Index fell 5.8% compared to the previous month, landing at 68.34. The decline reflects a sharp deterioration in how households view both their current financial situation and their expectations for the future.

The report pointed out that turbulence in financial markets—particularly the equity market—has negatively shaped consumer sentiment. Sub-indicators also showed a stronger perception that inflation and unemployment will rise in the coming months.

Expectations Weaken

The Bloomberg HT Consumer Expectations Preliminary Index slid 3.48% to 68.66 in September. The result highlights that households remain cautious about the economic outlook and their own financial prospects.

Consumption Appetite Strengthens

In contrast, consumer appetite for major purchases is on the rise. The Bloomberg HT Consumption Tendency Preliminary Index, which measures perceptions of whether the current period is suitable for buying durable goods, automobiles, and housing, jumped 4.74% to 77.99.

According to the report, the increase in spending intentions is being driven by suppressed real interest rates and persistently high inflation expectations. Consumers appear to view purchases now as a way to hedge against future price increases.