Consumer sentiment dropped in the United States for the second straight month despite President Joe Biden’s attempt to force Americans to be more satisfied with the economy.
According to the preliminary monthly poll of American households conducted by the University of Michigan on Friday, consumer sentiment declined for the second consecutive month in September.
Per a report released on Friday by the University of Michigan, the consumer sentiment index decreased from 69.5 in August to 67.7 this month.
Democrats had reason to believe that Americans might be moving past their pessimistic outlook on the economy after the index reached its highest level in nearly two years in July. But since then, attitudes have been a little worsening.
The average reading for the index is 86.
Though views of the present declined significantly, expectations for the future somewhat improved.
Despite the recent stagnation of disinflation, inflation predictions indicated that American consumers still expect inflation to decline.
In a statement, Joanne Hsu, the director of the survey, said:
“Throughout the survey, consumers have taken note of the stalling slowdown in inflation, but they do expect the slowdown to resume. Year-ahead inflation expectations moderated from 3.5% last month to 3.1% this month. The current reading is the lowest since March 2021 and is just above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations came in at 2.7%, falling below the narrow 2.9-3.1% range for only the second time in the last 26 months. In comparison, long-run inflation expectations ranged between 2.2 and 2.6% in the two years pre-pandemic.”
Inflation increased in August, according to data released this week, and real median family income decreased last year, falling to its lowest level since 2010.
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