American consumers are feeling worse about the state of the economy again due to the elevated inflation.
Source: University of Michigan.
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Consumer sentiment fell by 9.4% between April and May. That reserved the temporary gain posted in April when the sentiment was boosted by moderation in gas prices.
The consumer sentiment index dropped to 59.1, its lowest level since 2011. Other measures, including current economic conditions and consumer expectations, also fell.
Joanne Hsu, director of the Surveys of Consumers stated that consumers’ assessment of their current financial situation relative to a year ago stood at its lowest level since 2013, with 36% of consumers linking their negative assessment to inflation.
Inflation expectation for the year held stood at 5.4%, largely the same as the last three months. Long-term inflation expectations remained the same at 3%.