American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

U.S. consumer sentiment falls slightly as outlook for inflation worsens

by admin April 17, 2024
April 17, 2024
U.S. consumer sentiment falls slightly as outlook for inflation worsens

Consumer sentiment about the U.S. economy has ticked down but remains near a recent high, with Americans’ outlook largely unchanged this year.

The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, slipped to 77.9 this month, down from March’s figure of 79.4. Sentiment is about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages. The survey has been conducted since 1980.

“Consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy,” said Joanne Hsu, director of the consumer survey.

The index had dropped to 61.3 as recently as November before jumping in the following two months by the most in more than three decades. It has since moved mostly sideways.

Stronger consumer optimism can sometimes translate into more spending, which typically boosts the economy. Most economists expect consumer spending to remain healthy as long as the job market stays strong.

“Looking beyond the recent minor monthly volatility, sentiment remains on a rising trend,” Oren Klachkin, an economist at Nationwide, said in a research note. “It’s still a positive environment for the consumer.”

Among the respondents to the survey, sentiment fell the most among Republicans. Among independents, it edged down, and it rose slightly among Democrats. Americans’ economic views have become more driven by political partisanship in recent decades.

An increase in gas prices likely contributed to the decline in consumers’ outlook, according to Ian Shepherdson, chief economist at Pantheon Macroeconomics. The average national price of a gallon of gas has jumped about 7% from a month ago, according to AAA, to $3.63 a gallon.

Americans’ perceptions of future inflation also rose, probably reflecting still-high prices. Consumers expect inflation to be 3.1% a year from now, which would exceed the Federal Reserve’s 2% target. Still, that would be below the current level of 3.5%.

Inflation has tumbled from a peak of 9.1% in the summer of 2022 but has remained elevated so far this year. Prices excluding volatile food and energy costs, rose 3.8% in March from a year earlier, the same as in the previous month and well above the Fed’s target.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Dow tumbles 475 points, S&P 500 suffers worst day since January as inflation woes erupt
next post
Amazon owes $525 million in cloud-storage patent fight, U.S. jury says

Related Posts

Why everyone is suddenly talking about Nvidia, the...

May 31, 2024

Grindr stock analysis: why is it beating Bumble...

March 4, 2025

Long AZTA: Azenta Inc. Rebounds from $50 Support,...

February 6, 2025

Delta Airlines cancellations and delays continue but worst...

July 25, 2024

Capital One-Discover merger could put a bigger squeeze...

February 22, 2024

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

Bitcoin prices hit all-time high, soaring to nearly...

March 7, 2024

Commerzbank shares surge 17.5% as UniCredit buys 4.5%...

September 11, 2024

UBS raises global oil refining margins outlook amid...

July 10, 2025

American Airlines jet carrying 64 passengers collides with...

January 30, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,388)
    • Investing (2,615)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved