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US Consumer Psychology Stalled in Early September-University of Michigan

By Xavier Fontdegloria

 

US consumer sentiment remained largely unchanged in early September, remaining at a calm level after the sharp drop in August, caused by an increase in Covid-19 cases due to the epidemic of delta variants.

The University of Michigan’s tentative estimate of the Consumer Psychology Index released Friday was 71.0 in September, slightly higher than 70.3 in August, below the Economist’s 72.0 consensus forecast surveyed by The Wall Street Journal.

“The sharp fall in consumer sentiment in August ended in early September, but a slight rise expects consumers to have the most unfavorable economic outlook in more than a decade,” said Richard Curtin, chief economist at the survey. It meant that I did. “

Consumer confidence suggests Americans’ willingness to spend on goods and services that are a major driver of the US economy.

Two elements of the bill recorded an additional decline. Purchasing attitudes towards durable consumer goods fell to the lows once achieved in 1980, and the long-term economic outlook fell to the lowest level in 10 years, Curtin said.

A decline in the valuation of purchase terms for homes, cars and consumer durables has brought all three closer to record lows, and consumers have linked the decline to higher prices, he said.

According to a survey, inflation expectations for Americans in September were higher than last month. Next year’s consumers expect prices to rise 4.7%, compared to a 4.6% rise in August. Inflation is expected to remain unchanged at 2.9% over the next five years.

Consumer ratings for the current economic situation declined from 78.5 in August to 77.1 in September. The consumer expectations index rose from 65.1 last month to 67.1, reflecting the balance of respondents expecting the economy to improve over the next six months.

The final reading for the month will be published on October 1st.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

US Consumer Psychology Stalled in Early September-University of Michigan

Source link US Consumer Psychology Stalled in Early September-University of Michigan

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