US: Michigan consumer confidence plummets to lowest level since 2011 | 05/27/22

Michigan (dpa-AFX) – US consumer sentiment worsened in May than expected. The consumer climate, measured by the University of Michigan, is down 58.8 points, or 6.8 points from the previous month, the university announced Friday after a second round of surveys. This is the lowest level since 2011. On average, economists expected an initial estimate of 59.1 points to be confirmed.

Family expectations and assessments of the current situation have deteriorated significantly. Consumer inflation expectations were high. Inflation is expected to be 5.3 percent over the one-year period.

“This recent decline is due to the continuing negative sentiment on the current housing and durability buying conditions,” commented John Hsu, director of the survey. High inflation lowers expectations of economic growth.

The University of Michigan indicator is a measure of the buying behavior of American consumers. This is based on a telephone survey of about 500 households. Financial and economic situation assessment and expectations are queried./jsl // he