Economic sentiment fell over the last two weeks, dropping below the previous all-time low by a 1.3 point margin. From reading to reading, the HPS-CivicScience Economic Sentiment Index (ESI) decreased 1.5 points to 34.5.
For the second straight time, all but one of the five indicators decreased. Confidence in buying a new home fell 1.4 points to 19.3, a new record low, while confidence in the U.S. economy dropped 2.9 points to an all-time low of 31.6.
- Confidence in finding a new job fell 0.3 points to 49.8.
- Confidence in personal finances fell 2.9 points to 50.6.
The only indicator to improve was confidence in making a major purchase, which rose 0.4 points to 21.4.
Last week, Chairman Jerome Powell announced that the Federal Reserve would hike its benchmark interest rate by 50 basis points in response to inflation and the “hardship it is causing.” Chairman Powell indicated, however, that the Fed is not “actively considering” raising rates by 75 basis points.
