US: Inflation pushes Michigan consumer confidence to lowest level since 2011

news-source="dpa-afx">

MICHIGAN (dpa-AFX) – High inflation is increasingly weighing on US consumer sentiment. The consumer climate survey by the University of Michigan fell by 4.4 points to 62.8 points in February compared to the previous month, as the university announced on Friday after a second round of surveys. It is the lowest value since autumn 2011. However, a more significant drop to 61.7 points was determined in an initial estimate.

Both the assessment of the current situation and expectations deteriorated. However, the value for the expectations has been revised upwards compared to the initial estimate. Chief economist Richard Curtin attributed the gloomy mood primarily to the current high level of inflation. In addition, confidence in the government’s economic policy has fallen.

In January, US inflation climbed to 7.5 percent. That’s the highest rate in about 40 years. The US Federal Reserve has already signaled that it will raise interest rates in March. However, the war in Ukraine is likely to have increased uncertainty again.

The indicator from the University of Michigan is a measure of the purchasing behavior of American consumers. It is based on a telephone survey of around 500 households. The financial and economic situation assessment and the corresponding expectations are queried./jsl/bgf/he

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