Consumer Outlook Plummets in September, Inflation Expectations Worsen

In September, there was a marked deterioration in the consumer outlook. The main index of the survey fell to 47.8, down 7.5% from August. On an annual basis, the index decreased by 13.2%. This decline reveals that consumers' perception of economic conditions weakened both on a monthly and annual basis. The drop of the index to 47.8 indicates that the erosion in consumer confidence continues. According to the survey, the worsening inflation outlook is one of the main factors negatively affecting consumer expectations. Increasing concerns about price increases may suppress households' spending and saving decisions. This decline in the consumer outlook raises downside risks to economic activity. In the coming period, the course of inflation expectations will be decisive for consumer behavior and overall economic performance. Not investment advice.