US consumer sentiment has surprisingly deteriorated significantly
The consumer confidence barometer fell 9.8 points to 67.4 points in May. This is the worst value in six months.
Americans still face rapidly rising costs of living.
Image: Alison Diner/EPA via Keystone
US consumer sentiment deteriorated surprisingly sharply in May. A barometer of consumer confidence fell 9.8 points to 67.4, the University of Michigan reported Friday in its monthly survey. This is the worst value in six months. Analysts polled by Reuters had expected only a slight decline to 76.0 points. The growing pessimism reached across all age, income and education groups. Consumers assess both their situation and their prospects worse than ever.
Their inflation expectations have risen: Looking ahead to the next twelve months, they expect the inflation rate for goods and services to be 3.5 percent. Earlier, consumers considered only 3.2 percent. “They expressed fears that inflation, unemployment and interest rates could move in an unfavorable direction in the coming year,” it said.
Although the US Federal Reserve is countering this with high interest rate policy, Americans are still struggling with the cost of living. So it is unclear whether it will cut its key interest rate again for the first time in the summer.
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Reuters
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