Consumer Sentiment
The overall attitude and confidence of consumers regarding the economy and their personal financial situation. The podcast notes that despite positive macroeconomic data, consumer sentiment is exceptionally low, defining the 'Vibecession'.
First Mentioned
10/12/2025, 6:00:19 AM
Last Updated
10/12/2025, 6:02:11 AM
Research Retrieved
10/12/2025, 6:02:11 AM
Summary
Consumer sentiment is a vital economic indicator that gauges consumers' confidence in the economy, their employment prospects, and their personal incomes, directly influencing their propensity to spend. High consumer confidence typically signals economic expansion and increased consumption, whereas a decline suggests a slowdown in economic growth and reduced spending. The current U.S. economic landscape is notably characterized by a "vibecession," a phenomenon where robust macroeconomic data, such as GDP growth, starkly contrasts with pervasive negative consumer sentiment. This widespread feeling of financial strain is primarily attributed to persistent high inflation, which erodes purchasing power, and rising interest rates. Excessive government spending under both the Biden and Trump administrations has also been identified as a significant contributing factor to these economic conditions. Various organizations, including the University of Michigan and the Conference Board, publish indices like the Consumer Confidence Index (CCI) and the University of Michigan Consumer Sentiment Index to measure these perceptions, providing crucial insights for businesses and investors to anticipate future economic trends.
Referenced in 1 Document
Research Data
Extracted Attributes
Purpose
To gauge the likelihood of future consumer spending and anticipate economic conditions.
Definition
An economic indicator reflecting consumers' confidence in the economy, their jobs, and their incomes.
Impact of Low Confidence
Implies slowing economic growth, decreased spending, and potential economic trouble.
Impact of High Confidence
Indicates economic growth, increased consumption, and higher likelihood of purchases.
Current U.S. Economic Climate
Vibecession (disconnect between positive macroeconomic data like GDP growth and negative consumer sentiment).
Key Concerns (September 2025)
High prices, weaker labor markets, and softer personal financial outlooks (44% cited price pressures).
Contributing Factor to Current Conditions
Excessive Government Spending.
Primary Causes of Current Financial Distress
Crippling Inflation (decimating purchasing power) and soaring Interest Rates.
Average Michigan Consumer Sentiment (1952-2025)
84.88 points
Current Michigan Consumer Sentiment (October 2025)
55.0 points
Michigan Consumer Sentiment Change (Oct 2025 vs. Oct 2024)
-22.0% (15.5 points)
Current Michigan Consumer Sentiment Percentile (since 1978)
1st percentile of 574 monthly data points
Average Michigan Consumer Sentiment (1978-present, geometric mean)
83.1 points
Average Michigan Consumer Sentiment (1978-present, arithmetic mean)
84.3 points
Timeline
- Start of the period for which the US Index of Consumer Sentiment averaged 84.88 points until 2025. (Source: TradingEconomics)
1952
- Start of the data series for the University of Michigan Consumer Sentiment Index. (Source: AdvisorPerspectives)
1978
- US Consumer Confidence reached an all-time high of 111.40 points. (Source: TradingEconomics)
2000-01
- US Consumer Confidence reached a record low of 50.00 points. (Source: TradingEconomics)
2022-06
- The University of Michigan Index of Consumer Sentiment was 70.5 points. (Source: University of Michigan SCA)
2024-10
- US Consumer Confidence was 58.20 points. (Source: TradingEconomics)
2025-08
- US Consumer Confidence decreased to 55.10 points from 58.20 points in August. Sentiment fell broadly across demographic groups due to high prices, weaker labor markets, and softer personal financial outlooks. (Source: TradingEconomics, University of Michigan SCA)
2025-09
- The University of Michigan Index of Consumer Sentiment was 55.0 points, virtually unchanged from September and remaining at its lowest level since May. It was 34.7% below its average reading since 1978 and at the 1st percentile of historical data. (Source: University of Michigan SCA, AdvisorPerspectives)
2025-10
Wikipedia
View on WikipediaConsumer confidence index
A consumer confidence index (CCI) is an economic indicator published by various organizations in several countries. In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending. The idea is that the more confident people feel about the economy and their jobs and incomes, the more likely they are to make purchases. Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble.
Web Search Results
- Consumer Sentiment Stalls in October as High Prices and ...
To put today’s report in historical context, consumer sentiment is currently 34.7% below its average reading of 84.3 (arithmetic mean) and 33.8% below its geometric mean of 83.1, based on data dating back to 1978. The current index level is at the 1st percentile of the 574 monthly data points in this series. [...] Consumer sentiment was practically unchanged in October, remaining at its lowest level since May. The Michigan Consumer Sentiment Index inched down 0.1 points (-0.2%) to 55.0 this month. The latest reading was higher than the forecast of 54.1. Consumer sentiment has fallen by 22.0% (15.5 points) compared to a year ago. [...] > Consumer sentiment moved sideways this month. At 55 index points, sentiment is virtually unchanged from September. Improvements this month in current personal finances and year-ahead business conditions were offset by declines in expectations for future personal finances as well as current buying conditions for durables. Overall, consumers perceive very few changes in the outlook for the economy from last month. Pocketbook issues like high prices and weakening job prospects remain at the
- What Is Consumer Confidence and Consumer Sentiment? - Britannica
Consumer confidence and consumer sentiment are “confidence measures” that help gauge the likelihood of future consumer spending. Both measures breathe life into economic data by giving us a glimpse into the actual “experience” behind the numbers. Confidence reports can help businesses and investors anticipate and adjust to potential future economic conditions. [...] ## What is the Consumer Confidence Index? The Consumer Confidence Index (CCI) is a monthly report that measures the financial and economic optimism of American households. Published by the Conference Board, a nonprofit economic research institution, it surveys around 5,000 households across all nine census regions in the U.S., all varying in age and income. [...] The University of Michigan Consumer Sentiment Index (aka “Michigan Sentiment”) also aims to measure the health of the economy from a consumer perspective. Each month, the University of Michigan conducts telephone interviews (at least 500) to gather people’s opinions on their personal finances, the business climate, inflation expectations, employment conditions, and (important here) spending.
- US Index of Consumer Sentiment (Monthly) - United States
| The US Index of Consumer Sentiment (ICS), as provided by University of Michigan, tracks consumer sentiment in the US, based on surveys on random samples of US households. The index aids in measuring consumer sentiments in personal finances, business conditions, among other topics. Historically, the index displays pessimism in consumers' confidence during recessionary periods, and increased consumer confidence in expansionary periods. | [...] | The US Index of Consumer Sentiment (ICS), as provided by University of Michigan, tracks consumer sentiment in the US, based on surveys on random samples of US households. The index aids in measuring consumer sentiments in personal finances, business conditions, among other topics. Historically, the index displays pessimism in consumers' confidence during recessionary periods, and increased consumer confidence in expansionary periods. | [...] | US Index of Consumer Sentiment is at a current level of 55.10, down from 58.20 last month and down from 70.30 one year ago. This is a change of -5.33% from last month and -21.62% from one year ago. |
- of Consumer Sentiment - University of Michigan
Surveys of Consumers Image 1: Surveys of Consumers Logo Home Tables Charts Reports Contact Data Site Preliminary Results for October 2025 Oct Sep Oct M-M Y-Y 2025 2025 2024 Change Change Index of Consumer Sentiment 55.0 55.1 70.5-0.2%-22.0% Current Economic Conditions 61.0 60.4 64.9+1.0%-6.0% Index of Consumer Expectations 51.2 51.7 74.1-1.0%-30.9% ### Featured Chart (Image | PDF) Image 2: Featured Chart [...] Consumer sentiment moved sideways this month. At 55 index points, sentiment is virtually unchanged from September. Improvements this month in current personal finances and year-ahead business conditions were offset by declines in expectations for future personal finances as well as current buying conditions for durables. Overall, consumers perceive very few changes in the outlook for the economy from last month. Pocketbook issues like high prices and weakening job prospects remain at the
- United States Michigan Consumer Sentiment
3.7% from 3.9% for the next five years. Consumer sentiment fell broadly in September across age, income, education groups, and all five index components. Exceptions: steadiness among wealthier stockholders and improved views from Democrats, while independents and Republicans declined. Concerns centered on high prices, weaker labor markets, and softer personal financial outlooks, with 44% citing price pressures.more [...] from 3.9% for the next five years. Consumer sentiment fell broadly in September across age, income, education groups, and all five index components. Exceptions: steadiness among wealthier stockholders and improved views from Democrats, while independents and Republicans declined. Concerns centered on high prices, weaker labor markets, and softer personal financial outlooks, with 44% citing price pressures. source: University of Michigan [...] Consumer Confidence in the United States decreased to 55.10 points in September from 58.20 points in August of 2025. Consumer Confidence in the United States averaged 84.88 points from 1952 until 2025, reaching an all time high of 111.40 points in January of 2000 and a record low of 50.00 points in June of 2022. This page provides the latest reported value for - United States Consumer Sentiment - plus previous releases, historical high and low, short-term forecast and long-term prediction,