U.S. Consumer Confidence Hits Record Low

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In early June, consumer sentiment reached the lowest level ever recorded as inflation is hitting the United States. Americans are concerned about the economy and how it will impact their accounts. The University of Michigan posted their consumer sentiment showing a 14.4% drop from May to 50, which is the lowest index recorded since the survey started in the 1970s. While more than half of consumers surveyed said they expect their income to rise over the next year, 53% anticipate that inflation will wash any rise in income. The most recent consumer price index shows a 8.6% surge in inflation in May, the fastest pace since 1981. Americans have low confidence in the economy and are bracing for faster price increases.

“As higher prices become harder to avoid, consumers may feel no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether,” Joanne Hsu, director of the survey, said in a statement. 

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