HOUSTON — Consumer confidence continues to worsen as inflation gobbles up incomes and uncertainty is heightened by Russia’s invasion of Ukraine.
Data released on Friday shows The University of Michigan’s sentiment index dropped to 59.4 from 59.7 earlier in the month.
The survey also revealed that about a third of consumers expect their financial situations will get worse in the next year.
“That, just for context, is the worst they have seen since the 1940s,” said Kristin Myers with personal finance website The Balance. “It’s been a really long time since we’ve seen consumers this pessimistic about their finances and their money.”
Myers said with that pessimism like this, many consumers change spending habits.
“People are saying, 'I can’t afford, right now, to go out there and buy some of the things I was buying previously,” said Myers. “They’re saying instead, 'I’m going to stick to just the essentials.'”
“I stay home more,” said Yvonne Hunte in Sugar Land.
And she’s not alone.
Kasandra Henriquez pointed out the rise in everything from groceries to gas.
“We try to just do activities at home,” she said. “You can’t afford it anymore.”