As the inflation crisis worsens, consumer sentiment in the United States plummets to its lowest level in a decade.


As the inflation crisis worsens, consumer sentiment in the United States plummets to its lowest level in a decade.

Americans are still hoping for better economic times. According to a study released on Wednesday, consumer sentiment is at its lowest level since the Great Recession ended.

“Consumers exhibited less confidence about prospects for their own finances as well as the general economy in the November 2021 survey than at any other time in the prior decade,” said Richard Curtin, chief economist for the University of Michigan’s consumer survey.

The University of Michigan’s consumer mood index plummeted to 67.4, down 6% from October, indicating that Americans’ expectations for improving economic conditions have dwindled. This was reflected in their indicator for judging actual economic conditions, which declined 5.3 percent to 73.6 in the last month, while the index for consumer expectations dropped 6.5 percent.

Inflation in the core hasn’t slowed down either. Personal consumption expenditures – a vital indicator for broader inflation in the US economy — increased by 0.6 percent in October, the highest level since December 1990.

Inflation has become the defining problem for White House and Federal Reserve policymakers. Prices are rising despite clogged supply systems and trillions of dollars spent by the government to combat the COVID-19 pandemic.

President Joe Biden has set his sights on forming new alliances both at home and overseas to help untangle supply chain bottlenecks that have pushed up prices. In July, the White House announced the creation of a Supply Chain Disruption Task Force to coordinate efforts to reduce prices and deliver items to market. The Federal Reserve began weaning off its multibillion-dollar monthly purchases, which began at the start of the pandemic, on November 3.

Throughout the year, both the Fed and the White House held the notion that inflation was “transitory,” or just temporary. Consumers, on the other hand, have shown that they do not share that outlook, as the cost of basic items has continued to rise.

Complaints about living standards have nearly doubled in the last six months and quintupled in the last year, according to Curtin, highlighting consumers’ growing dissatisfaction.

Curtin did, however, find a silver lining in his findings. Consumers are ready to reunite with loved ones and put their amassed money to good use now that the holiday season has arrived and public health restrictions have been lifted, he said. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.


Comments are closed.