A survey released in this report showed US consumer confidence suddenly and unexpectedly fell to its lowest level in five months in early July, as inflation fears dented consumer confidence in the US economic recovery.
The University of Michigan said on Friday its initial consumer confidence index fell to 80.8 in the first half of this month – the lowest since February – from a final reading of 85.5 in June. Economists polled by Reuters had expected the index to rise to 86.5.
“Consumer complaints about rising prices for homes, vehicles and durable home goods have reached an all-time high,” Election Director Richard Curtin said in a statement.
The survey’s measure of current economic conditions also declined to 84.5, the lowest since August 2020, from 88.6 in June. The consumer expectation indicator declined from 83.5 to 78.4, the lowest since February.
One-year inflation expectations rose to a high of 4.8% since August 2008, from 4.2%, while the five-year inflation forecast rose to 2.9% from 2.8% in June.