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Consumer sentiment fell to its lowest level in 10 years amid sustained inflation, according to a UMich study

Numbers: The University of Michigan Consumer Psychology Gauge fell from the first reading of 59.1 at the beginning of the month to the last reading of 58.4. This is the lowest level in over 10 years.

According to a study by The Wall Street Journal, economists expected a read of 59.1.

American expectations for overall inflation next year fell from 5.4% in April to 5.3% in May, but expectations for inflation over the next five years remained at 3%.

Big picture: High inflation is still in the minds of consumers, although data show that price pressures may ease somewhat, supported by a slight drop in gas prices.

An important indicator of inflation in the United States The price of a typical basket of consumer goods announced on Friday rose 6.3% year-on-year in April, down from a 40-year high of 6.6% in March.

“This recent drop [in sentiment] In a statement, Consumer Research Director Joan Sue said in a statement that there was a continuing negative view of the current buying situation for homes and durables, and the consumer’s future economic outlook, primarily due to concerns about inflation. Was greatly towed by. “At the same time, consumers were less pessimistic about the future outlook for their personal finances than their future business situation.”

“In the long run, the majority of consumers expected the financial situation to improve over the next five years. This share will remain essentially unchanged for 2022,” she added. “A stable outlook for personal finance may currently underpin consumer spending. Still, a persistent negative view of the economy dominates personal factors that will influence future consumer behavior. May come to. “

Important details: Consumers’ view of the status quo fell from 69.4 in April to 63.3 in May, and forecasts for the next six months fell from 62.5 in the previous month to 55.2.

Market reaction: In both S & P 500, US stocks were trading high on Friday
SPX,
+ 1.58%

And Dow Jones Industrial Average 30 species average
DJIA,
+ 0.76%

Get the ground.

Consumer sentiment fell to its lowest level in 10 years amid sustained inflation, according to a UMich study

Source link Consumer sentiment fell to its lowest level in 10 years amid sustained inflation, according to a UMich study

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