There was an unexpected shift in US consumer confidence, which fell sharply in early July because Americans doubted the economic recovery about high inflation concerns.
The University of Michigan stated that its preliminary consumer confidence index fell from 85.5 in June to 80.8 in the first half of July. The new figure is the lowest level since February and is lower than the expected 86.5. Reuters reported.
The US consumer confidence index fell to 71.8 in April, which was lower than the expected 67 https://t.co/obK7VyPVfe
— CNBC (@CNBC) April 24, 2020
As for the reasons for the decline in consumer confidence, the main complaint is price increases.
“Consumers’ complaints about rising prices of houses, vehicles and household durable goods have reached a record high,” said Richard Curtin, director of the investigation.
#new Consumer confidence fell to a six-month low due to inflation concerns
The University of Michigan Consumer Confidence Index fell from 85.5 in June to 80.8 in early July
Missing economists’ market sentiment is expected to rise to 86.3
Consumers expect the cost of living will increase by 4.8% this year
— Greta Wall (@GretaLWall) July 16, 2021
Curtin said the reason for the decline was that consumers misjudged the speed of economic recovery when the pandemic began to weaken. This involves underestimating the economy’s ability to restart supply lines and resume work, leading to inflation.
“Instead of creating jobs, preventing and reversing the accelerating inflation rate has become our top concern,” Curtin said Market observation.
