Although the ferocious inflation that affected the US economy has somehow been contained, the latest monthly survey from the University of Michigan revealed that, for the first time in four months, consumer confidence fell.
While the survey shows that inflation-related expectations fell during February from 4.1% to 3.8%; the general index of consumer confidence was affected, since it went from 67 to 63.4, which represents a decline of 5.4%.
In addition, the expectations index also fell from 64.7 to 61.5, which implies a fall of 6.1%.
Through a statement, Joanne Hsu, director of the survey, noted that the high price of most products caused lower-income consumers to refrain from spending beyond what is necessary.
“Overall, all index components worsened relatively evenly, mainly on the back of persistently high prices, which provided downward momentum for sentiment that led to the financial turbulence that began last week.
The decline in confidence was concentrated among lower-income consumers, less educated and younger,” he said.
Other information that was disclosed was that last month retail sales decreased 0.4% and that the use of credit cards increasedwhich indicates that millions of families are resorting to “cheap money” offered by financial institutions with the risk of not being able to meet their debts later.
And it is that, although the Federal Reserve to a certain degree has managed to stop inflation, said situation is still not reflected in the pockets of families, which, fearing a possible recession in the economy, try to spend every day what less possible.
In this way, most economists envision that, by the end of this month, consumer confidence could decline further after witnessing the bankruptcy of Silicon Valley Bank and with the likelihood that other institutions will follow suit.
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Source: La Opinion
