Monday Markets Mail (CW 25)

Consumer confidence in the USA fell to a record low

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Washington (APA/dpa-AFX) - Burdened by high inflation, US consumer sentiment fell to a record low in June. The consumer sentiment survey by the University of Michigan fell by 8.4 points to 50.0 points compared to the previous month, as the university announced on Friday after a second round of surveys. This is the lowest value ever measured. In the first estimate, a value of 50.2 points had been determined.
 
Expectations and the assessment of the current situation deteriorated noticeably. Joanne Hsu, head of the survey, commented that sentiment had deteriorated among all sections of the population. Above all, concerns about inflation weighed on sentiment. Consumers' inflation expectations remained at a high level. They expect an inflation rate of 5.3 per cent over the next year.
 
The indicator of the University of Michigan is a measure of the purchasing behaviour of US consumers. It is based on a telephone survey of about 500 households. The survey asks about the assessment of the financial and economic situation as well as the corresponding expectations.