Consumer confidence plunges to lowest level in a decade as inflation soars higher
Retail sales rising despite inflation concerns
Money Map Press chief strategist Shah Gilani, Main Street Asset Management LLC CIO Erin Gibbs and Belpointe chief strategist David Nelson discuss the impact the market’s ‘volatility’ has on consumers.
U.S. consumer confidence plunged to a 10-year low in November, reflecting heightened concerns among Americans about hotter-than-expected inflation and the rising price of everyday goods.
The University of Michigan’s consumer sentiment index fell to 66.8 in November – down sharply from the October reading of 71.7 and well below economists' forecast for a reading of 72.4.
"Consumer sentiment fell in early November to its lowest level in a decade due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation," Richard Curtin, the survey’s chief economist, said in a statement.
US HEADED INTO ANOTHER RECESSION IF CONSUMER SENTIMENT TREND CONTINUES, ECONOMISTS SAY
The survey showed that 1 in 4 consumers have reduced their living standards as a result of higher prices, and more than half of families expect to see their real income reduced in the year ahead when adjusted for inflation.
"Rising prices for homes, vehicles, and durables were reported more frequently than any other time in more than half a century," Curtin added.