Economic Outlook Dims for 2024 Due to High Inflation and Interest Rates Dampening Consumer Spending
-
Businesses and households are less optimistic about economic prospects in 2024, especially Q1, due to expectations of high inflation, lower income, and dampened consumer spending.
-
Business outlook for Q1 2024 worsened, with confidence index falling to 38.2% from 53.8%, attributed to projected drop in consumer spending, supply chain issues, high inflation, and rising interest rates.
-
Household optimism about next 3 months also declined to 5.6% from 7.8%, expecting faster price increases, lower income, and fewer jobs.
-
Percentage of households with savings decreased to 29.1% from 32.8%.
-
For those with savings, money is being set aside for emergencies, health/medical, education, retirement, business/investment, and house purchase.