Consumer sentiment in the United States is experiencing a sudden collapse
Consumer sentiment deteriorated significantly. The index fell to 54.7 in November from 59.9 in October.
Despite the slight drop in the US inflation rate, consumer sentiment unexpectedly clouded significantly. The measure for this fell in November to 54.7 from 59.9 in October, the University of Michigan announced Friday in its monthly survey. Economists polled by Reuters had expected only a drop to 59.5 points. Consumers assessed their situation more skeptically than in the previous month, and also looked to the future more pessimistically than it has recently.
According to the survey, citizens expect the prices of goods and services to rise by 5.1% over the next twelve months. In October, they were still forecasting a value of 5.0 per cent.
The US inflation rate fell to 7.7% from 8.2% in October but remained elevated. This fuels speculation that the Fed will raise interest rates less aggressively. This has resulted in the key interest rate rising in unusually large strides for several months in order to bring down the inflation rate. Recently, it has increased again by three-quarters of a percentage point. The key rate is currently in the range of 3.75 to 4.00%.
Reuters
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