The index, prepared by the Conference Board business institute, fell 13% compared to April, reaching 67.4 points.
This record surprised analysts, who had predicted a much smaller decline and had 76 points, according to the consensus collected by the specialized site Market Watch.
“Consumers had reserved their opinion in recent months, but now they perceive a negative evolution in several aspects,” explained the person responsible for the survey, Joanne Hsu, quoted in a statement.
In that sense, Americans “expressed their concern about the unfavorable evolution of inflation, unemployment and interest rates over the next year.”
At the beginning of the year, the Federal Reserve (Fed, Central Bank) was considering starting to lower its rates in the following months. This would have reduced interest on home or car loans and even credit cards.
But the rise in inflation since January led to it being put aside, to avoid a new increase in prices.
Source: With information from AFP and other sources.
