Recent data showed that consumer morale in the United States deteriorated sharply during the month of April, in conjunction with the escalation of global trade tensions, while inflation expectations for 12 months have recorded its highest level in more than 4 decades.
The French Press Agency quoted the Michigan University Center for consumer opinion polls as saying that the general consumer trust index fell to 50.8 points in April, compared to 57.0 points last March, which is one of the lowest levels registered since the global financial crisis.
This reading came worse than the expectations of the economists whose Reuters polled, as they suggested the decline of the index to only 54.5 points.
Stagnation
Joan Has, the director of the center, said in a statement to the French Press Agency, that this decrease “was comprehensive and recorded across all groups, whether in terms of age, income, education or political and geographical affiliation.”
She added that consumers talked about “a set of warning indicators that enhance the possibility of entering the economy in a recession, such as a decline in expectations on general economic conditions, personal financial situation, income, and the future of inflation, in addition to the continuous decline in confidence in the labor market.”
The French Press Agency reported that the Michigan poll also showed high inflation expectations among consumers during the next 12 months to levels that have not been recorded since 1981, which reflects the escalation of popular anxiety from the repercussions of American customs duties and international responses, and their potential impact on prices.
