Consumer Sentiment Sinks as Hope Crashes and Inflation Expectations Hit Four-Decade HighJohn Carney 25 Mar 2022
Everyone has jobs and no one is happy because prices are rising so sharply.
U.S. consumer sentiment fell in March to the lowest since 2011 despite the level of jobless claims declining to the lowest level in decades and unemployment likely sinking to multi-decade lows.
The University of Michigan’s sentiment index dropped to 59.4, from 62.8 in February, data released Friday showed. This was lower than the mid-month read of 59.7. Economists had projected no further deterioration from the mid-month reading.
“Inflation has been the primary cause of rising pessimism, with an expected year-ahead inflation rate at 5.4 percent, the highest since November 1981,” said Richard Curtin, the surveys chief economist, in a statement.
The sentiment index has taken a severe beating in the first year of Biden’s presidency, falling 30 percent compared with March of 2020. The index of current conditions is off by 27.7 percent while the expectations index is down 31.9 percent.
Both expectations and current conditions indexes fell again in March. The reading of current conditions was off by 1.5 percent compared with February. The expectations index fell by a jaw-dropping 8.6 percent.
Inflation is taking a heavy toll on consumers, leading many to conclude that any income gains will be overwhelmed by rising prices.
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https://www.breitbart.com/economy/2022/03/25/consumer-sentiment-sinks-as-hope-crashes-and-inflation-expectations-hit-four-decade-high/
