Consumer sentiment hits record low
Oil expert warns gas prices could reach ‘apocalyptic’ numbers 00:00 00:0001:40GO LIVE Facebook Twitter Email Embed SpeedNormal Autoplay U.S. consumer confidence tanked in early June, reaching the lowest level ever recorded as soaring inflation batters Americans’ budgets.
The survey indicated declines in every component, reflecting a bleak vision from respondents: The year-ahead outlook tumbled 24%, while Americans’ assessments of their personal financial situations worsened by 20%.
More than half of consumers surveyed said they expect their incomes to go up over the next year. But at the same time, 53% responded that they anticipate that inflation will outpace any rise in income.
The survey indicated declines in every component, reflecting a bleak vision from respondents: The year-ahead outlook tumbled 24%, while Americans’ assessments of their personal financial situations worsened by 20%.
“While consumers are relatively optimistic about the stability of their incomes, their perceptions of the economy are much more strongly influenced by concerns over inflation,” Joanne Hsu, director of the survey, said in a statement.
“As higher prices become harder to avoid, consumers may feel no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether,” Hsu continued. “The speed and intensity at which these adjustments occur will be critical for the trajectory of the economy.”
