Most Americans feel financially secure, but uncertainty is holding them back from spending big.
Transcript:
CAROLINE WOODS: Dana, were there any signs of bright spots in the latest consumer confidence report?
DANA PETERSON: Well, consumers were still pretty optimistic about their current and future finances. Now finances include not only your wages, but your benefits. Also any assets you may have. And consumers are saying that area is fine. And we think that’s the case because Yes, many consumers are still working. Most people are working. The unemployment rate is very low and anyone who owns assets has seen Yes, their asset valuations go up and down, but for the most part, they’ve been going up this year and recovering.
CAROLINE WOODS: So Dana, if people still have jobs and they’re optimistic about their finances, wouldn’t that bode well for the broader economy?
DANA PETERSON: It should. But again, if you have higher inflation, either from tariffs or if the Strait of Hormuz is closed and gasoline prices spike, then consumers will probably pull back even though they have the capacity to spend.
CAROLINE WOODS: So if you had to sum up how the consumer is doing right now, what would you say?
DANA PETERSON: Financially, the consumer is doing great. Most people are working. Wages are still rising at a very elevated clip relative to pre-pandemic, but they’re very nervous and uncertain, and certainly that’s going to weigh on their likelihood of spending.
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