Recent data from the University of Michigan’s consumer sentiment survey paints a grim picture of Americans’ economic outlook. Released on Friday, the survey revealed a sharp decline in consumer sentiment, with the index dropping to 57.9, the lowest level since November 2022. This marks a significant drop from last month’s reading of 64.7 and falls short of the 63 predicted by economists.
One of the major drivers of this negative sentiment is rising inflation expectations. Over the past month, consumers’ one-year inflation expectations surged to 4.9%, up from 4.3% in February. This shift represents a notable jump from just two months ago, when consumers were expecting inflation to be at 3.3% over the next year. More concerning, however, is the rise in long-term inflation expectations, which now stand at 3.9%, up from 3.4% in February. This marks the highest level of long-term inflation expectations since 1991.
Further compounding these worries, the survey also highlighted a drop in expectations regarding unemployment, which has reached its lowest level since the Great Financial Crisis. This shift signals growing concerns that economic challenges may intensify in the coming months.
Overall, the latest survey data underscores the growing uncertainty among Americans, with inflation and job market concerns weighing heavily on the nation’s economic outlook.
