US consumer sentiment is deteriorating
US consumer confidence fell in July. High prices cause distress to consumers.
Looking ahead to the next twelve months, consumers expect an inflation rate for goods and services of just 2.9%.
Image: David Zalubowski, File/AP Photo/Keystone
US consumer sentiment surprisingly worsened in July. A barometer of consumer confidence fell to 66.0 points from 68.2 points in June, a University of Michigan survey reported on Friday. Economists polled by Reuters had expected a slight increase to 68.5 points. Citizens see their situation worse than in June and are more pessimistic about prospects. According to survey director Joanne Hsu, high prices continue to bother many Americans, even though inflation expectations have eased somewhat.
Looking ahead to the next twelve months, consumers expect an inflation rate for goods and services of just 2.9%. In June they estimated 3%. Consumer prices did not rise strongly in June, rising 3% after 3.3% in May. Many investors expect key interest rates to drop in September. The Federal Reserve currently maintains a range of 5.25 to 5.5%.
Reuters
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