California consumer confidence plunges to 5-year low

"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."

California consumer confidence fell 16% in November, returning to levels last seen in December 2020 and about 25% below its 2007 average. Much polling occurred before the 43-day federal shutdown ended on Nov. 12. The present-situation index dropped 11% to a low not seen since March 2021 and sits 10% below average. The expectations index declined 22% to its lowest level since October 2011 and is 37% below average. National confidence also weakened, falling 7% to a seven-month low and 3% below its 19-year average. Contributing factors include the shutdown, a wobbling job market, immigration enforcement, a state budget shortfall, lingering inflation, and Federal Reserve concerns about employment.

Read at The Mercury News