(Reuters) – US consumer confidence fell abruptly and unexpectedly to its lowest level in five months in early July, as fears over inflation affected consumer confidence in the US economic recovery, it said. a survey released this Friday.
The University of Michigan said on Friday that its preliminary consumer confidence index fell to 80.8 in the first half of this month – the lowest level since February – from a final reading of 85.5 in June. Economists polled by Reuters had expected the index to rise to 86.5.
“Consumer complaints about rising prices for homes, vehicles and durable household goods have hit an all-time high,” poll director Richard Curtin said in a statement.
The survey’s measure of current economic conditions also dropped to 84.5, the lowest since August 2020, from 88.6 in June. The consumer expectation indicator dropped to 78.4, the lowest since February, from 83.5.
Expectations for one-year inflation reached the highest level since August 2008, at 4.8%, against 4.2%, while the forecast for inflation in five years rose from 2.8% in June to 2. 9%.
(By Evan Sully)
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