American consumers’ perceptions of the national economy have deteriorated markedly because they fear that long-term restrained inflation will continue.
According to the monthly survey of consumer sentiment University of Michigan, Rising inflation has severely weakened Americans’ expectations that the future will soon be brighter than it is now. Each of the three types of emotions captured in the Michigan survey fell by double digits from the same period last year.
The consumer confidence index was 66.8, a decrease of 6.8% from October. Consumer expectations did not improve either, with a final score of 62.8, a decrease of 7.5% from the previous month.
In terms of how Americans measure current economic conditions, the views are equally pessimistic. In this regard, the final score was 73.2, a decrease of 5.8% from October, reflecting the pain ordinary consumers felt when the price of daily necessities soared due to inflation.
Consumer confidence comes from@UMichNovember was quite weak, at 66.8 (the lowest level since 2011), compared to 72.5 and 71.7 in the previous month; current conditions dropped to 73.2 and 77.7 before. Unfortunately, the expected components dropped to 62.8 and 67.9. pic.twitter.com/REks50umQk
-Liz Ann Sonders (@LizAnnSonders) November 12, 2021
The Michigan survey is the latest measure, depicting worried and pessimistic people who are exhausted by the turbulence of the COVID-19 pandemic, but are now forced to deal with levels of inflation not seen since 1991.The prices of basic needs from households and energy to energy, as reflected in recent data, are all rising. Consumer Price Index (CPI) with Producer Price Index (PPI) From the Ministry of Labor.
The feelings captured in the survey also show that the American public does agree that inflation is “temporary” or temporary, which is advocated by the Federal Reserve and the Federal Reserve. Biden AdministrationRecently, both the Federal Reserve and the White House have stated that they are keenly aware that even if the pandemic continues, inflation is becoming a common concern for the US economy.
President Joe Biden has taken actions at the national and international levels to prioritize alleviating supply chain bottlenecks that push up prices.At home, Biden has priority Reduce the transportation backlog in US ports and reduce transactions with the company to ensure timely delivery to the store.Abroad, Biden has the support of his peers Group of 20 member countries Lift the bottleneck.
Federal Reserve For its part, as of last week, it has reduced billions of dollars in asset purchases.Although it still believes that inflation may ease next year, the central bank believes it is time to reduce its own purchases because it is Possible hike Raise interest rates next year.
