Although US consumer sentiment rose slightly in April, the majority of Americans still foresee inflation rising over the next 12 months, despite the Federal Reserve’s efforts to cool the economy.
The University of Michigan’s preliminary sentiment reading for April rose from 62 to 63.5, against Reuters forecasts calling for an unchanged print. “Sentiment is now about 3% below a year ago but 27% above the all-time low from last June,” the report noted. “Rising sentiment for lower-income consumers was offset by declines among those with higher incomes.”
Meanwhile, Americans’ inflation expectations jumped from 3.6% in March to 4.6%, after four straight months of irregular spikes. The five-year inflation outlook stood unchanged for the fifth consecutive month, remaining in the range between 2.9% and 3.1% for 20 months. “Uncertainty over short-run inflation expectations continues to be notably elevated, indicating that the recent volatility in expected year-ahead inflation is likely to continue,” the report added.
Sponsored · Granada Gold Mine Inc.
More notably, the survey highlighted that the number of spontaneous mentions of inflated prices have dropped for car and durable goods purchases, but not for personal finances.
Information for this briefing was found via the University of Michigan. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
