What makes consumers confident or not?
First of all, why does it matter?
Well, if consumers are not confident, they’re far less likely to increase their spending.
Usually, what moves consumer confidence are headlines and news on the economy.
Think about it from your perspective.
You read that the economy is slowing down. You’re not sure you’r going to get that pay raise.
You’re going to save up. You won’t buy those fun things you want buy don’t need.
Right now, there are headlines every day about trade between the U.S. and China. Most people are aware that more tariffs on both sides means damage to the economy, while progress towards an agreement could only be a positive for the economy.
The headlines have been all over the places mostly because the U.S. President has been inconsistent. But people know that as well. This isn’t supportive of consumer confidence.
The headlines about a looming recession also provides a ceiling for consumer confidence.
This will impact your investments. Watch the video above.