Consumer sentiment in U. S. growing due to weak inflation
2023.01.13 10:36
Consumer sentiment in U. S. growing due to weak inflation
By Kristina Sobol
Budrigannews.com – According to a survey that has been closely watched and was released on Friday, consumer sentiment in the United States reached its highest point in eight months at the beginning of the year as rising energy costs eased concerns about inflation.
The University of Michigan’s index increased from 59.7 in December to 64.6 in January, its highest level since May, as both assessments and conditions significantly improved throughout the month.
The perception that inflation is decreasing, even if only temporarily, was one reason for the shift in tone. The 12-month rate of inflation decreased from 4.4% a month earlier to 4.0%, but respondents were more concerned about the outlook for the long term: Their average expectation for inflation over the actually increased by 0.1% to 3.0% from 2.9%, clearly exceeding the target of 2% set by the Federal Reserve.
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