PT Solid Gold Berjangka | US Consumer Sentiment Slips on Dimmer View of Inflation Outlook


Ekonomi AS Prelim UoM Consumer Sentiment PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | It seems like the US consumer sentiment took a hit in early April, with the University of Michigan’s preliminary consumer sentiment index dropping to 77.9 from the previous month’s 79.4. This decline was more significant than what was forecasted, reflecting frustration with high prices among Americans.

Here are some key points from the data:

  1. Consumer Sentiment Decline: The drop in the sentiment index is notable because it was the highest since mid-2021, showing a reversal in the positive trend.

  2. Inflation Expectations: Consumers now expect prices to climb at an annual rate of 3.1% over the next year, up from 2.9% expected the previous month. For the next five to 10 years, they see costs rising by 3%, which is a five-month high.

  3. Joanne Hsu’s Comment: Joanne Hsu, the director of the survey, mentioned that these increases in inflation expectations are not alarming to consumers, but they are not satisfied with the current pace of disinflation.

  4. Gasoline Prices: Rising gasoline prices, now at a six-month high, likely contributed to this decline in sentiment.

  5. Blaming High Prices: The share of consumers attributing eroding living standards to high prices rose to 39% in April from 33% in March.

  6. Current Financial Situation: Consumers’ perception of their current financial situation dropped to a four-month low.

  7. Buying Conditions: Views on buying conditions for durable goods also eased, with a higher share mentioning high prices as a factor affecting purchasing decisions for vehicles and durable goods.

  8. Overall Impact: Elevated prices, along with high borrowing costs, are keeping consumer sentiment below pre-pandemic levels.

This data suggests that while consumers are not in a state of panic regarding inflation, they are feeling the effects of rising prices, which is affecting their perceptions of their financial situation and buying behavior.