Consumers in the United States were not optimistic about the economy and were increasingly worried about accelerating price increases, blunting the outlook for recovery.
The University of Michigan’s Consumer Psychology Index fell from 85.5 last month to 80.8, but Shine-off data released Friday saw strong demand in electronics and apparel stores boost retail sales in June. Shows recovery. And the restaurant.
Richard Curtin, Chief Economist of Consumer Research at the University, said:
Shoppers say “Sticker shockA range of products from chicken to used cars.Consumer price index Jumped June was the highest in 13 years at 5.4%, following a 5% increase from the previous month. Wholesale prices are also rising, signaling higher consumer costs. The producer price index rose 7.3% last month, the highest annual rate of increase since at least 2010.
The Federal Reserve Board supported the prediction that inflation surges would be short-lived, but some lawmakers argued that the central bank and the Biden administration underestimated the risks that inflation poses to economic recovery. doing.
Federal Reserve Board Chairman Jay Powell at this week’s parliamentary hearing Pushed back We oppose the proposal that the central bank is complacent and guarantee legislators that they are ready to respond if inflation exceeds expectations.
“I know people are very worried about inflation,” Powell said. “We hear it loudly and clearly from everyone … It really goes through the economy and every business.”
In a consumer sentiment survey, complaints related to rising prices in homes, cars and consumer durables reached record levels, helping the index fall to its lowest level since late February.
Respondents estimated inflation to be 4.8% a year ahead, the highest outlook since August 2008, compared to 4.2% in June.
“Inflation has put more pressure on the standard of living of low- and middle-income households, and has caused large-scale postponement of discretionary purchases, especially among high-income households,” Curtin said.
Economists closely monitor sales trends and are consumers buying products now to stay ahead of future price increases, or instead using cash to save more or pay off debt? Is judging.
According to a Reuters economist poll, retail sales were up 0.6% month-on-month, below expectations of a 0.4% decline, according to data released by the US Census Bureau on Friday.
Retail spending has slowed in recent months after a surge in shopping activity earlier this year. In May, sales fell 1.7% as federal stimulus weakened.
Paul Ashworth, chief US economist at Capital Economics, warned that inflation could “cover” weaknesses in actual sales activity.
Still, consumers are eager to spend with strong demand for goods, and as Covid-19 restrictions have been lifted in almost every region of the United States, many are buying tickets for hotel rooms and sporting events. I have a reservation. Expenditures for services such as travel accommodation are not included in retail sales data.
James Knightley, ING’s Chief International Economist, said:
Last month, the National Retail Federation raised its sales forecast for this year, forecasting annual growth of 10.5% to 13.5% compared to 2020. Previously, it predicted a 6.5% increase.
The June retail sales report showed that food services, including restaurants and bars, continued to recover with a monthly increase of 2.3%. Sales of appliances, grocery stores, gas stations, department stores and drug stores also increased. Sales at car dealers, furniture stores, home and gardening centers declined.
Excluding fuel, retail sales increased 0.4% from May, compared to a 1.9% decrease last month.
U.S. consumers are increasingly worried about rising inflation
Source link U.S. consumers are increasingly worried about rising inflation