Inflation has hammered U.S. consumers since 2021, but relief is finally arriving—most noticeably at the gas pump.

After spending ten weeks below 50, the main confidence index of the latest Forbes Advisor-Ipsos Consumer Confidence poll is up 2.5 points to 52.1.

The uptick in consumer optimism has been helped along by President Joe Biden’s student loan forgiveness plan, the Inflation Reduction Act and consistently strong job numbers.

But the good news comes with a big caveat: Our latest survey also found that consumers are tightening their budgets.

Nearly 35% of people said they’re spending less than usual, a 6-point jump from this time last month and the highest percentage since November 2021.

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https://www.forbes.com/advisor/personal-finance/consumer-confidence-increases-but-spending-decreases/

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