The recent data from the University of Michigan reveals a significant decline in consumer sentiment amidst heightened policy uncertainty under President Trump's administration. Consumer confidence has dropped for the third consecutive month, with a total decrease of 22% since December. Consumers across various demographics express increased apprehension about inflation, anticipating an increase to 4.9% in the next year. Analysts suggest that fluctuating economic policies contribute to this uncertainty, adversely impacting consumers' ability to make financial plans, as well as affecting job and stock market expectations.
A new survey released on Friday showed consumer sentiment plummeting 11 percent in March as Americans of all ages, income groups and political affiliations turned even more downbeat about the trajectory for the economy.
Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future.
Consumers also revised up their expectations for inflation, both for the year ahead and over a five-year horizon, with expectations for 4.9 percent inflation over the next 12 months.
Elevated economic policy uncertainty and the sharp drop in stock prices have greatly undermined consumers' confidence, as reported by Samuel Tombs, chief U.S. economist.
Collection
[
|
...
]