U.S. Consumer Confidence Falls to 12-Year Low on Inflation, Gas Prices

Household spending sentiment has declined to levels last seen during the 2014 energy market downturn, with measurable impacts on consumer purchasing expectations and business investment signals. Real wage growth (3.1% year-over-year) has fallen below inflation metrics (3.7% PCE), reducing disposable income purchasing power and likely to constrain retail spending, service demand, and durable goods purchases over the next six months. Labor market expectations have weakened for three consecutive months, which historically precedes slower hiring and unemployment increases.