The IBD/TIPP Economic Optimism Index, a leading measure of consumer confidence, declined 2.9 points or 6.2%, from 46.8 in October to 43.9 in November. The index started to fall in July and has dropped for five months in a row.
Confidence in November is 26.6% below its pre-pandemic level of 59.8 in February 2020.
The IBD/TIPP Economic Optimism Index is the first monthly measure of consumer confidence.
It accurately predicts monthly changes in sentiment reflected in other well-known surveys conducted by The Conference Board and the University of Michigan.
Consumer spending drives two-thirds of the economy. Optimistic consumers spend money on automobiles, home improvements, new homes, and other large-ticket items.
The TIPP Economic Optimism Index is the most well-known of our TIPP indexes. Investor's Business Daily publishes the IBD/TIPP Economic Optimism Index every month.
Multiple factors are behind the decline of the index and its components.