The University of Michigan index fell to 59.4 points, its lowest level in more than ten years.
The confidence of American consumers, worried that inflation will continue to erode their purchasing power in the coming months, fell in March to its lowest level in more than a decade, with the war in Ukraine further clouding the outlook.
The index measuring confidence fell to 59.4 points, according to the final estimate of the University of Michigan survey released on Friday, which changed little from the 59.7 points of the preliminary estimate, released in middle of the month.
“Inflation has been the main cause of the rise in pessimism,” commented in the press release Richard Curtin, the economist responsible for this survey, which is closely followed by the markets.
“Due to the combination of rising prices and lower income expectations, half of all (surveyed) households expected lower inflation-adjusted incomes over the coming year,” says he.
The economist clarified that “the only area of the economy that consumers were still optimistic regarding was the strength of the labor market.”
In addition, half of consumers do not have confidence in their political leaders to solve these difficulties, further details this study, while leaders must now face, in addition to COVID, the war in Ukraine, “a major source economic disruption,” notes Richard Curtin.
In detail, the index measuring the perception of the outlook for the economy fell by 8.6% compared to February and fell to 54.3 points, while that measuring how households perceive the current situation fell by 1, 5%, to 67.2 points.
