In September 2023, The Conference Board reported a decline in the Consumer Confidence Index from 108.7 to 103.0, marking the second consecutive decrease of this metric.
Additional noteworthy data includes:
– The Present Situation Index increased slightly from August’s score of 146.7 to September’s score of 147.1.
– The Expectations Index decreased from August’s score of 83.3 to September’s score of73 .7.
According to Chief Economist Data Peterson in a press release detailing the report, consumers expressed concerns about rising prices for groceries and gasoline as well as political situations and higher interest rates.
Experts attribute these sentiments to various factors such as inflation, weather conditions, government shutdowns and student loan payments.
Economist Ray Perryman notes that while these numbers are not surprising given current events, they may have an impact on consumer behavior over time but will likely not directly affect commercial real estate like it does with housing markets.
Realtor Alexander Capozzolo suggests that owners and managers should evaluate investment risks in sectors heavily dependent on consumer spending during uncertain periods like this one.He also advises landlords keep open communication with tenants for better understanding their situations which can inform leasing strategies.Additionally,it is important for property owners have enough liquidity or credit availableto meet potential declines in income or property values.Finally,Capozzolo recommends taking advantageof market downturns by acquiring valuable properties at lower prices if possible.The post Report: Consumer Confidence Falls for Second Straight Month appeared first on Connect CRE .
