American consumer confidence fell sharply this month due to household concerns about higher inflation. The University of Michigan reports this in a preliminary estimate.
The confidence index fell to 67.4, compared to 77.2 in April. That is the lowest level in six months. The figure was also much lower than economists had expected. According to researchers, consumers expect inflation to be higher in the coming year than previously thought. High inflation undermines the purchasing power of households.
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The US central bank, the Federal Reserve, may also wait longer before lowering interest rates if inflation is high. These interest rate concerns also play a role in the decline in confidence, as does uncertainty about the job market in the United States. These concerns exist across a broad front in American society, according to the university researchers.
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Tags: Substantial decline consumer confidence BNR News Radio
