Economists say gas prices are behind lowest consumer confidence index since July

The Conference Board reported the lowest United States consumer confidence index since July, and economists say still-high gas prices are largely to blame.

The Conference Board releases monthly numbers that “reflect prevailing business conditions and likely developments for the months ahead. This monthly report details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices, and interest rates.”

For the month of November, the CCI came in at only 100.2, down from 102.2 in October. The number is the lowest since July this year, when it came in at only 95.7.

The report for November showed that while consumers are not confident in the direction prices are going, they have a much more favorable outlook on the jobs market.

In November, 45.8% of consumers said jobs were “plentiful,” up from October’s 44.8%. Fewer consumers had a positive outlook about their personal incomes, with fewer believing their incomes would increase, and more believing they would decrease than in October.

“Inflation expectations increased to their highest level since July, with both gas and food prices as the main culprits,” said Lynn Franco, senior director of economic indicators at CB. “Intentions to purchase homes, automobiles, and big-ticket appliances all cooled. The combination of inflation and interest rate hikes will continue to pose challenges to confidence and economic growth into early 2023.”

“Consumer confidence declined again in November, most likely prompted by the recent rise in gas prices,” said Franco. “The Present Situation Index moderated further and continues to suggest the economy has lost momentum as the year winds down.”