Amid inflation worries and a considerable interest-rate hike from the Fed, consumer sentiment dropped to a new low in the University of Michigan survey which tracks it.
The index for June fell to 50, a steep decline from the 58.4 reading that was registered in May.
“Inflation continued to be of paramount concern to consumers; 47% of consumers blamed inflation for eroding their living standards, just one point shy of the all-time high last reached during the Great Recession,” Joanne Hsu, Director of the University of Michigan’s Survey of Consumers, wrote in her synopsis of the results.
Those surveyed expect year-ahead inflation of 5.3%. Expected long-run inflation is 3.1%.