Cruel Summer: Consumer Sentiment Plummets as Inflation Fears Grip the NationJohn Carney 24 May 2024
Americans are bracing for a cruel summer as consumer sentiment takes a significant hit, driven the impression that we cannot shake off persistent inflation and the view that the economy is not out of the woods.
The University of Michigan’s consumer sentiment index fell to 69.1 in May, a sharp decline from 77.2 in April, marking the lowest reading in five months.
Despite beating the preliminary estimate of 67.4, the final reading for May represents a significant decline from the previous month.
Expectations for inflation have edged up, with Americans now predicting a 3.3 percent increase over the next year, up from 3.2 percent in April. This is still lower than the preliminary reading of 3.5 percent, but the trend is unsettling for both consumers and policymakers.
Joanne Hsu, director of consumer surveys at the University of Michigan, highlighted the growing pessimism.
“These deteriorating expectations suggest that multiple factors pose downside risk for consumer spending,” she noted.
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https://www.breitbart.com/economy/2024/05/24/cruel-summer-consumer-sentiment-plummets-as-inflation-fears-grip-the-nation/
