Consumer Consumer Company Survey University of Michigan showed a quick reduction in consumer confidence in the midst of historically high inflation expectations. Economists say it could be a bad sign for the economy of the United States.
Report: The report, published on Friday, showed 11% a monthly decline and a drop of 22% compared to December 2024. Meanwhile, inflation expectations in March jumped from 4.3% in February to 4.9%, which is most of November 2022.
The study showed some signs of political polarization, although Republicans, Democrats and independent all reported the fall of their economic expectations.
Economic reactions: Experts did not capture the survey results, calling them a serious warning sign for the American economy.
“This is a terrible report,” Samuel TombsThe main American economist from Pantheon Macroeconomics, he told the New York Times. “Increased uncertainty of economic policy and sharp decline in shares have greatly disturbed the confidence of consumer.”
Stanford Professor Neale Mahoney Expectations of the Stagflation called “scary” in the post on X.
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Diane SwonkThe main economist for KPMG, he had similar worries.
“Unfortunately, data on consumer feelings have a stagflating vibe, which is a challenge for the federal reserves. The current tariffs we have seen are so big and the poor that they have hit margins and prices,” SWonk announced on X.
Bill AdamsComeric’s chief economist Comeric Bank, in a similar way, expressed concern whether high expectations of inflation would prevent federal reserves from reducing interest rates.
“This is bad news. People who are afraid of losing their job are withdrawing to discretionary consumption,” Adams said on Friday. “Do not hold your breath so that the FED drives to rescue if consumption falls as inflation expectations grow.”
The seller warns the pressure: On Tuesday, Kohl’s Corp. (Nyse:KSS) Alerted to challenging prospects for Fiscal 2025, expecting sales to fall by 5% to 7%, quoting “limited” customers.
Executive director Ashley Buchanan He said that most of the coil user base was pressed by the growing costs of rent, housing and foods, noting: “If you earn less than 50 [thousand]This consumer is quite limited from the discretion of the point of view, “and adding that the behavior that seek value” is likely to expand … through cohorts of income in the next three or four months. “
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