November 17, 2022
The University of Michigan Survey of Consumers reported a number for November of 54.7, which was considerably below the estimate and a decline of 8.7% from the reading for the previous month in the U.S.
The poll found a specific decline in attitudes against spending on durable goods, which include expensive things like televisions, kitchen equipment, and cars. That group’s index decreased 21%.
According to a carefully monitored sentiment indicator issued, consumers have significantly less confidence in the current status of the economy as well as where things are headed. This is due to higher interest rates, a likely recession, and consistently high prices.
In November, the University of Michigan Survey of Consumers reported a value of 54.7, which was 8.7% lower than the reading of 59.9 from the previous month. That was far lower than the Dow Jones prediction, which called for little change at 59.5.
The current economic circumstances index decreased 11.9% to 57.8 along with that reading. Consumer expectations, a measure of respondents’ expectations for the next six months, fell 6.2% to 52.7.
The headline index reading decreased 18.8% on an annual basis, while the measures of current conditions and future expectations also decreased by 21.5% and 17%, respectively.
The consumer price index increased by 0.4% in October, less than the 0.6% projection, according to the Bureau of Labor Statistics, according to a publication from the University of Michigan one day earlier. That information sparked a ferocious rise on Wall Street, where there was widespread belief that the Federal Reserve could slow the rate of interest rate increases now that inflation is beginning to level off.
Purchases of durable goods have been declining for the past two quarters after surging during the early stages of the Covid epidemic. This decline started around the middle of 2021.
Despite October’s CPI figure, which indicated that year-over-year price growth increased by 7.7% as opposed to 8.2% the month before, inflation expectations grew somewhat in the month.
Source: CNBC
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
