U. of Michigan says US consumer sentiment falls as low-income households languish
by SOURAV D | VIEW 1343
In context of a crummily sapped socioeconomic narrative in the United States what had witnessed a preposterous annihilation of its middle-class households over past decade, a survey conducted by University of Michigan had unveiled on Friday that its index for US Consumer Sentiment had tumbled to the second-lowest in a decade over first half of January, as more Americans are reportedly fretting over a stabbing surge in inflation indicators alongside growing dubiousness over the Biden Administration’s ability to snap that. In point of fact, latest survey from the University of Michigan also had underscored a growing negativity among low-income households with sentiments of lower income households dropping as much as 9.4 per cent. Ironically, consumer sentiment soared by 5.7 per cent among higher income households, illustrating a sharp depreciation in consumers’ morale in average or low-income households earning below $100,000 per annum, which surprisingly now account for over an 84.5 per cent of entire US population.
Nevertheless, latest steeper-than-anticipated decline in the index came forth as a lion’s share of Americans had reportedly been missing out the tailwinds of a roaring US economy with the top 1 per cent ultra-riches responsible for more than a 20 per cent of overall income, while an exhaustive increase in inflation with US Consumer Prices Index rising as much as 7 per cent over past twelve months through December on an annualized basis, had added to further holocaust apart from a sharp rise in Omicron cases.
US Consumer Confidence sours in early-January
According to a survey from the University of Michigan, its preliminary index for US consumer sentiment had dipped to 68.8 over first half of January compared to a final reading of 70.6 logged last month, marking off the second-lowest level in a decade.
Meanwhile, addressing to an acceleration in inflation indicators, the survey director, Richard Curtin said in a statement, “While the Delta and Omicron variants certainly contributed to this downward shift, the decline was also due to an escalating inflation rate”.