ING And Wells Fargo: Inflation Hits Consumer Sentiment

ING and Wells Fargo note the weakness in consumer sentiment hitting just ahead of the key holiday shopping season although caution that there has been a significant deviation between the Michigan and Conference Board surveys recently.

• ING note that consumer sentiment falling to a ten-year low underscores just how concerned households are about inflation.
• There is however a "massive disconnect between the Michigan survey and the Conference Board index so caution is warranted in over interpreting today's number" whilst there is also a significant different in sentiment depending on the consumer's political stance.

• Wells Fargo note it's particularly concerning that "these consumers' views on pricing seem to be really setting in just ahead of the holiday shopping season" and that "as price gains have broadened out beyond the goods categories at the center of reopenings and supply chain shortages, consumers are feeling the sting of higher prices across most purchases".
• "50% of people thinking that the government is doing a 'poor job' fighting inflation and unemployment, the highest rate since 2014".