Apparently, consumers in the U.S. may be getting leary of the stubbornly high inflation rate.
Consumer sentiment fell in April on dimmer views of personal finances and the economy as inflation expectations climbed. Bloomberg reported that the University of Michigan’s final April index fell to 77.2 from 79.4 in March, according to figures issued Friday. The median estimate in a Bloomberg survey of economists called for the gauge to hold at its preliminary reading of 77.9.
Consumers expect prices will climb at an annual rate of 3.2% over the next year, the highest since November and up from the 2.9% expected in March. They see costs rising 3% over the next five to 10 years, also a five-month high, Bloomberg reported.
While “consumers’ frustration over high prices in their day-to-day spending decisions grew this month, price concerns for large purchases — durable goods, vehicles, and homes — were all little changed from last month,” Joanne Hsu, director of the survey, said in a statement.
Some 38% of consumers reported that high prices were impacting their living standards, up from 33% who said so last month, according to the report.
Consumers’ perceptions of their current financial situation and the economic outlook over the next year both slid to four-month lows.
The current conditions gauge dropped to 79 from 82.5. A measure of expectations fell to 76 from 77.4.
“Consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election,” Hsu said.
This month, the university began a transition to online surveying rather than telephone calls. March data comprised more than 600 phone interviews and nearly 200 web interviews, Bloomberg said.
