Skip to content

Economic Confidence Collapses As A Flood Of Negatives Predicts A Bad Patch

After an eight-month spell in the positive zone, economic confidence plummets in September.

Lady checking bills

The IBD/TIPP Economic Optimism Index, a leading measure of consumer confidence, declined 5.1 points or 9.5%, from 53.6 in August to 48.5 in September.

After eight consecutive months in the positive territory, the index entered the negative territory.

Confidence in September is 18.9% 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 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 collapse of the index and its components.

This post is for paying subscribers only

Subscribe

Already have an account? Log in

Latest