California consumer confidence plunges to 5-year low

"California consumer confidence has plummeted to levels not seen since the pandemic's economic upheaval. My trusty spreadsheet's review of the Conference Board's Consumer Confidence Index for California found that shopper psyche plunged 16% in November from October. This pushed the measure down to a level last seen in December 2020. Much of the index's polling for this report took place before the 43-day shutdown ended on Nov. 12. This Golden State optimism tally is now 25% below its average since 2007."

"Consumers juggle numerous challenges. The federal government shutdown, no matter who you blame, rattled nerves. Perhaps its resolution will revive sinking financial sentiments. Still, the job market appears wobbly. Immigration crackdowns are unnerving a part of the population. Plus, the state government budget has another huge shortfall. And while budget-busting inflation has decreased from its recent peak, it's worrisome that it's still not resolved for most shoppers' satisfaction. The key price watchdog, the Federal Reserve, also seems more anxious about the employment picture."

"Slumping slices The California index tracks two slices of shopper sentiment, neither of which reveals much economic enthusiasm. Its present situation index measuring current conditions dropped 11% in November to a low last seen in mid-pandemic March 2021. It's also 10% below average. The expectations index gauging consumers' financial outlook was off 22% in November to its lowest level since October 2011. It's now 37% below average."

California consumer confidence fell 16% in November, bringing the Conference Board's index to a level last seen in December 2020. Much of the polling was conducted before the 43-day federal shutdown ended on Nov. 12. The index is 25% below its 2007 average and recorded its weakest November since 2012, undermining holiday shopping optimism. Consumers face multiple pressures: federal shutdown uncertainty, a wobbly job market, immigration crackdowns, and a state budget shortfall. Inflation has eased from its peak but remains unresolved for many shoppers. The Federal Reserve expresses increased concern about the employment picture, and both present and expectations subindexes fell sharply.

Read at www.ocregister.com