Tag

Consumer Sentiment

All articles tagged with #consumer sentiment

Inflation Outpaces Pay, Eroding Americans’ Purchasing Power and Confidence
economy5 days ago

Inflation Outpaces Pay, Eroding Americans’ Purchasing Power and Confidence

Despite a growing economy and low unemployment, inflation has outpaced wage growth for four straight months, eroding purchasing power and dampening consumer sentiment. A University of Michigan survey shows most Americans expect prices to rise faster than income, and a Chicago Booth/ADP study finds real wages fell for about 40% of workers between 2020 and 2024, with bonuses offering little relief. The result is persistent economic unease even as growth and jobs remain positive.

Gas-price relief lifts consumer mood, but momentum faces headwinds
business1 month ago

Gas-price relief lifts consumer mood, but momentum faces headwinds

Lower gas prices boosted the University of Michigan’s consumer sentiment index by about 10% to 54.4, the highest since February, with gains across age, income, wealth, and political group, though sentiment remains below a year ago. The relief could be short-lived amid ongoing Middle East tensions and energy-price volatility. June retail spending rose 0.2% (0.7% excluding gas), unemployment stood at 4.2%, and inflation expectations for the coming year fell to 4.2% from 4.6%, but remain well above pre-crisis levels. Economists caution that sentiment hasn’t consistently predicted spending in recent years.

Gas-price relief lifts consumer sentiment for first time in three months
economy2 months ago

Gas-price relief lifts consumer sentiment for first time in three months

New University of Michigan data show consumer sentiment rose 9% to a preliminary 48.9 this month, marking the first uptick in three months, aided by recent declines in gasoline prices; however, sentiment remains historically weak amid ongoing inflation and energy-price volatility linked to the Iran war. Economists say a real recovery will require sustained price stability, with low-income households buoyed most by cheaper gas, while a separate TransUnion survey finds inflation remains the top financial worry.

American Wallets Wobble: Fed Data Show Worsening Finances and Job Anxiety
economy2 months ago

American Wallets Wobble: Fed Data Show Worsening Finances and Job Anxiety

New York Fed’s May Survey of Consumer Expectations finds Americans are gloomier about their finances and job prospects, with inflation expectations around 3.5% and rising costs erasing wage gains; the labor market remains slow with modest job gains and rising perceived risk of unemployment, while quit rates edge up as people test the job market.

Inflation Pressure and Job Anxiety Strain Americans, NY Fed Survey Finds
economy2 months ago

Inflation Pressure and Job Anxiety Strain Americans, NY Fed Survey Finds

A New York Fed survey finds roughly 48% of Americans say their finances are worse than a year ago, the highest share since early 2023, with optimism about the next year at a low; inflation remains elevated as gas prices stay high and May CPI is expected to show around 4.2% inflation; about 15% fear losing their job within a year, wage growth (3.4% in May) lags inflation (roughly 3.8%), and credit card delinquencies have climbed to the highest level since 2011, signaling growing financial strain despite hiring gains.

Food Insecurity Deepens Consumer Pessimism in a Split Economy
economics2 months ago

Food Insecurity Deepens Consumer Pessimism in a Split Economy

A New York Fed analysis using the Survey of Consumer Expectations finds rising food insecurity since 2020—disproportionately among lower‑income, less‑educated households and those with children—alongside a sharp drop in consumer optimism and job-finding prospects. Despite solid macro indicators, sentiment remains weak, reflecting a K‑shaped economy where the bottom half faces renewed financial strain. The study links higher insecurity to deteriorating outlooks, while acknowledging that inflation, cost of living, and policy changes (e.g., SNAP) also drive pessimism and that multiple factors influence consumer expectations even among those not reporting food insecurity.

New York Fed flags a surge in food insecurity as costs bite lower-income families
economy3 months ago

New York Fed flags a surge in food insecurity as costs bite lower-income families

A Federal Reserve Bank of New York study updates a 2020 analysis with fresh data from its Survey of Consumer Expectations, finding a “remarkable” rise in food insecurity in early 2026—especially among lower-income households and families with young children—where 10% report not having enough food in February, up from 4% in 2020. Increases in food donations and SNAP participation, plus more households dipping into savings, accompany a shift in sentiment as Americans face higher costs and waning pandemic-era aid, highlighting persistent inequality in a K-shaped economy. The report notes the data predated the Middle East oil shock and does not claim a causal link between insecurity and consumer sentiment.

Warsh Takes the Fed Helm as Inflation Climbs and Confidence Dips
business3 months ago

Warsh Takes the Fed Helm as Inflation Climbs and Confidence Dips

Kevin Warsh is sworn in as Federal Reserve chair at a moment of rising inflation and eroding consumer sentiment, with President Trump backing his independence but warning that growth does not equal inflation. The economy faces high oil prices, tariffs, and AI-related costs, prompting debate over whether to tighten policy or hold. Officials signal no easing bias, and investors are eyeing a possible rate move at the June meeting as they weigh Warsh’s approach against the Fed’s goals of price stability and maximum employment.

Inflation’s betrayal reshapes how Americans view the economy
politics3 months ago

Inflation’s betrayal reshapes how Americans view the economy

Despite solid GDP growth and strong markets, Americans’ confidence in the economy is at historic lows. Vox explains the “vibe gap” — a mismatch between long-running price expectations and current reality — and how decades of low inflation have left people feeling betrayed by today’s inflation and the cost of living, a mood reflected in UMich sentiment surveys and CNN polls.