“Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36% of consumers attributing their negative assessment to inflation.'
Americans’ expectations for overall inflation over the next year fell held steady at 5.4% in April, while expectations for inflation over the next 5 years remained at 3%.
Big picture: Rising prices continue to weigh on U.S. consumers views on the economy, with expectations for year-ahead inflation remaining at levels not seen in more than 40 years. The decline in consumer attitudes from April “were broad based” and “visible across income, age, education geography and political affiliation” according to Joanne Hsu, director of the survey.
“Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36% of consumers attributing their negative assessment to inflation,” Hsu added. “Buying conditions for durables reached its lowest reading since the question began appearing on the monthly surveys in 1978, again primarily due to high prices.”
Key details: A gauge of consumer’s views of current conditions fell to 63.6 in May from 69.4 in April, while an indicator of expectations for the next six months declined to 56.3 from 62.5 in the previous month.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. consumer sentiment approaches 11-year low, monthly import prices unchangedWorries about inflation persisted but household spending remains underpinned by a strong labor market and massive savings, which should keep the economy expanding.
Read more »
Stock futures decline ahead of PPI, jobless claimsU.S. equity futures traded lower Thursday morning as selling continued after the consumer price index for April remained near a 40-year-high, sparking concerns about a looming recession.
Read more »
US producer prices surge 11% in April as food prices jumpU.S. producer prices soared 11% in April from a year earlier, a hefty gain that indicates high inflation will remain a burden for consumers and businesses in the months ahead.
Read more »
US producer prices surge 11% in April as food prices jumpU.S. producer prices soared 11% in April from a year earlier, a hefty gain that indicates high inflation will remain a burden for consumers and businesses in the months ahead.
Read more »
Biden admin cancels massive oil and gas lease sale amid record-high gas pricesThe Biden administration canceled one of the most high-profile oil and gas lease sales pending before the Department of the Interior Wednesday, as Americans face record-high prices at the pump, according to AAA.
Read more »
Asia-Pacific markets set to dip after data shows U.S. inflation near 40-year highs in AprilThe U.S. consumer price index surged 8.3% in April as compared with a year ago, near the highest level in more than 40 years.
Read more »