Consumer Confidence Hits Decade Low Despite Robust Spending

Consumer confidence has plummeted to its lowest level since May 2014, according to the Conference Board's index, as concerns over inflation, job security, and rising costs weigh heavily on households. Yet paradoxically, spending remains resilient—particularly among high-income earners—defying the gloomy sentiment surveys.

Economists note a widening disconnect between sentiment and behavior. Wells Fargo analysts observe consumers felt more optimistic during the pandemic's peak than today, yet retail sales and GDP growth continue their upward trajectory. This divergence suggests macroeconomic fundamentals may outweigh psychological factors in driving consumption patterns.

The persistence of this trend through 2026 could signal structural shifts in spending habits, where disposable income thresholds and asset appreciation (particularly in equities and digital assets) buffer against inflationary pressures. Market watchers should monitor whether cryptocurrency holdings increasingly contribute to this consumption resilience as adoption grows.