Afraid of inflation press consumer mood in the USA to a new low

Afraid of inflation press consumer mood in the USA to a new low

Michigan, USA - The concerns about inflation in the USA are increasing, which leads to a significant decline in consumer mood. According to the survey carried out by the University of Michigan, the consumer climate index fell to 67.8 by 3.3 points in February - the lowest level in seven months. This surprises the markets because economists had expected a value of 71.8 points. Joanne Hsu, head of the survey, emphasizes that the confidence among the Republicans has decreased after the presidential election, while the Democrats are still concerned about the economic effects of Donald Trump's policy. Independent voters are also increasingly skeptical, as well as krone.at reported.

inflation expectations rise rapidly

The increasing inflation expectations of consumers contribute to the depressed mood. Within one year, expectations rose from 3.3 percent to 4.3 percent, while long -term forecasts climbed from 3.2 to 3.3 percent. This development illustrates concerns about an increase in prices, which could be reinforced by customs measures. The survey covers the financial and economic situation of around 500 households in the USA. The growing skepticism with regard to the economic future is alarming because it influences the current situation and future expectations of consumers, which is also Investment Week

Overall, the consumer climate index shows the current uncertainty among consumers, which is of great importance for the US economy. The political tensions and the concerns about rising prices could have far -reaching consequences for the buying behavior of the Americans.