The University of Michigan Consumer Sentiment Index it plunged to 50.2 in June, its worst level since records began in the 1970s, according to the preliminary release of the university’s widely followed monthly consumer survey.
The consumer expectations index fell to 50.2, its worst level since records went back to the 1970s, according to the preliminary release of the university’s widely followed monthly consumer survey.
The Consumer Expectations Index fell to 46.8 from 55.2 in May, well below the expected decline to 54.5 and also a new record low. For its part, the Current Conditions Index fell to 55.4 from 63.3, well below the expected decline to 62.5, its worst level since May 1980. One-year inflation expectations rose to 5.4% from 5.3% in May, while five-year inflation expectations rose to 3.3% from 3.0%.
market reaction
The latest weak consumer sentiment numbers and rising inflation expectations have exacerbated some of the moves triggered by higher-than-expected US inflation data.
Equity markets have worsened and US bond yields are extending higher, which is dragging the dollar higher as traders price in a more stagflationary US economy (weaker growth, but higher inflation and higher inflation). Federal Reserve still aggressive).
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
