Consumers have been saying how fed up they are with inflation. But they keep on buying stuff, says Stephen Brown at Capital Economics. 

Pessimism can start to shape reality if people put off asking for a raise or decide to take a worse job then they might have otherwise.

Conference Board surveys point to unease about job security and raise questions about Americans’ future spending.

The Conference Board reported the biggest monthly decline in consumer confidence since 2021. And the University of Michigan reported a sharp increase in inflation expectations.

Inflation expectations vary by political affiliation, especially with tariffs in the mix. But fears of inflation can be self-fulfilling.

Economic uncertainty has combined with a persistent lack of affordability to chill the housing market.

A key measure of consumer confidence finds consumers anticipating worse economic conditions.

Confidence was expected to continue to rise. Consumers cite inflation, politics and tariffs as factors they see influencing the economy.

Income growth is continuing to propel the U.S. economy. But whether consumers keep spending into next year could depend on where they are on the income scale.

Unemployment is near record lows, GDP is growing, inflation has been trending down, wages are up. But in spite of it all, people are feeling bad.