Americans are feeling less optimistic about the economy, and it's showing in the numbers.
Consumer confidence dropped for the fifth consecutive month, falling nearly eight points in April to 86, the lowest it's been since the early months of the COVID-19 pandemic in 2020.
We posted a poll on our KSBY Instagram page and asked members of our community a few questions from the Conference Board survey. Here’s what they had to say about the Central Coast economy:
- 71% said they believe current business conditions in our area are bad.
- Similarly, 71% said they think conditions will get worse over the next six months.
Nearly one-third of Americans now expect hiring to slow in the months ahead, numbers we haven’t seen since the Great Recession in 2009.
Cuesta College economics professor Susan Kline explained what this trend means for workers.
"Really, it's the confidence of, will I be employed? Will I make enough money at my job to maintain the lifestyle I've become accustomed to?"
Half of consumers also say they’re worried about a potential recession.
Americans’ short-term outlook for income, business, and jobs fell 12.5 points to 54.4, the lowest in over 13 years and well below the 80 mark that economists often watch as a recession indicator.
"It feels like a one-two punch," Kline said. "We're paying higher prices, and we're watching our wealth in the stock market dip. The unfortunate reality is that cutting back on purchases, which we naturally do during uncertainty, is what can actually push us into a recession."
When asked if there’s anything business owners and consumers can do to prepare, Kline said, “The number one thing people ask me is, 'What can we do about it?' For my students, it's a good time to invest if you're young and entering the stock market for the first time. But for the rest of us, there's not much we can do in the face of inflation."
This week, the government is expected to release data on U.S. economic growth during the first quarter, and the Labor Department will release its latest jobs report.
Stay with KSBY News and Daybreak for the latest economic updates each morning.
