US consumer sentiment continued its downward trend, reaching its worst level in 10 years, plunging 8.2% from the previous month and 19.7% from last February.
Source: University of Michigan
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The recent plunges in consumer confidence can be attributable to deteriorating personal financial prospects due to the rising inflation, less confidence in economic policies and the least favorable long-term outlook.
In February, the decline was among households with incomes of $100,000. Their sentiment dropped by 16.1% from last month and 27.5% from last year.
The impact of rising inflation on personal finance was indicated by one-third of the surveyed consumers, with almost 50% of all consumers anticipating declines in their inflation-adjusted incomes in 2022.
The index of current economic conditions dropped to 68.5 in February from 72.0 in January and the index of Consumer Expectations dropped from 64.1 in January to 57.4 in February.