WASHINGTON– Consumer confidence deteriorated again in June in the United States amid major concerns about purchasing power, after more than three years of strong inflation created by Joe Biden’s government.
The index fell 5.1% compared to May to 65.6 points, one of the worst records during Joe Biden’s government, which has been characterized by disapproval and distrust of his criticized economic management, according to the University’s preliminary estimate. of Michigan published on Friday.
This data disappointed analysts who expected a drop to 71.5 points, according to the consensus gathered by Market Watch.
The person responsible for the survey, Joanne Hsu, reported “a sustained increase in concerns linked to rising prices and falling incomes.”
For more than three years, consumers have suffered from the very high prices of the basic basket and all services, which include electricity, water, insurance of all kinds, restaurants and entertainment venues.
Government data
According to the Joe Biden administration, inflation moderated in the United States in May to 3.3% compared to 3.4% in April; However, consumers continue to pay the very high prices accumulated after more than three years of an inflationary crisis unprecedented in its duration, and the worst in almost five decades.
Consumer confidence in the economy plummeted in May in the United States, to its lowest since November, on concerns about the labor market and interest rates that remain high.
The University of Michigan index that measures this central parameter in the world’s largest economy fell to 69.1 points compared to 77.2 points in April, the institution announced on Friday.
Analysts expected an even bigger drop, to 67.6 points, according to the Market Watch consensus.
“American consumers were particularly pessimistic about the economic situation next year, especially “about the labor market” since they expect a rise in the unemployment rate and a halt in income growth,” commented the person responsible for the survey. , Joanne Hsu, quoted in a statement.
“The prospect of interest rates that remain high also weighed on consumer opinion,” he highlighted, noting that there is “a risk of a fall in consumer spending.”
Consumer confidence in the United States economy fell in May to its lowest level since November, amid concerns about the evolution of inflation, employment and interest rates, according to a preliminary estimate from the University of Michigan.
Source: With information from AFP.
