The mood of US consumers goes to the ground. Inflation in action
American consumers are not in a good mood and no longer willing to spend, or are simply afraid for the future. The University of Michigan (UMich) Consumer Sentiment Indicator plummeted from 71.7 to 66 , 8 (well below the expected 72.5%), the lowest value since 2011. Both "current conditions" and "expectations" also collapsed in the preliminary data for November …
As UMich director Richard Curtin notes, the collapse in sentiment is " due to an increase in the rate of inflation and the growing belief among consumers that effective policies have not yet been developed to reduce the damage resulting from rising inflation . ". How strange, consumers don't trust Biden. Who knows why.
All this despite a stock market that is climbing to new highs every day. Consumers lack confidence, but despite this the bubble is rising. Mhh reminds me a lot of 1929 …
Purchase conditions plummeted to the lows of the new (multi-decade) cycle (after a very brief rebound in home purchase conditions in October).
As President Biden's approval rate dips to new lows, it's not surprising that sentiment is down across all political cohorts, but the big drop has been for Republicans. In the end it is a question of trust, and the Americans have no faith in Biden's politics, especially when it is evident that the presidential economic policy does not work, fails to combine growth and inflation control. Many are intimately aware of this.
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The article The mood of US consumers goes downhill. Inflation in action comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lumore-dei-consumatori-usa-va-a-terra-inflazione-in-azione/ on Sat, 13 Nov 2021 07:00:45 +0000.