The concerns of the Americans about the economy worsened this month as consumers expressed increasing concerns about the increase in prices and weakening of the labor market, according to the Michigan University Survey published Friday.
Key data
Consumer confidence, a measure of Americans’ opinions on economic perspectives decreased to 55.1 in September from 58.2 in August, below the historical point of 100 and the lowest level since May, according to a reading of the Survey of the University of Michigan.
The decrease in feeling fell below the 55.9 Wall Street consensus, according to Factset.
The Americans anticipate that inflation will increase to 4.7% during the next year, below the projections of August 4.8%, and that prices increase 3.7% in the next five to 10 years, an increase of 0.4% with respect to the reading last month.
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Why are Americans pessimistic about the economy?
Joanne Hsu, director of the survey, said in a statement that consumers “continue to express frustration for the persistence of high prices,” and 44% of respondents “spontaneously” spontaneously “the highest prices such as” eroding their personal finances, “the highest reading in a year. The Americans have been increasingly concerned about the prospects for their personal income and finance, said HSU, added that consumers “feel pressure both for the perspective of greater inflation and for the risk of weaker labor markets.”
Key history
Although consumers are increasingly bitter with the economy, the expense accelerated in recent months despite the fact that inflation remained above the 2% target of the Fed. Consumer expenditure increased by 0.5% intermennsual in July to the highest level in four months, before decreasing to a growth of 0.4% in August, according to federal data published on Friday. The president of the FED, Jerome Powell, suggested earlier this week that the “short -term” risks of inflation have cooled, while the concerns about a labor market have increased in decline. Unemployment rose to 4.3% in August after the United States added many less jobs than expected, and Wall Street expects the rate to remain the same in September, according to Factset. Richmond’s president Tom Barkin said on Friday that consumers suggested that consumers would continue to spend since “unemployment is still low, nominal wages continue to increase and assets of assets are close to historical maximums.”
This article was originally published in Forbes Us.
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