US consumer optimism hits decade low
According to a new survey, inflation is a major concern for US consumers
U.S. consumer sentiment has hit a low for the decade fueled by concerns over rising inflation, according to the latest numbers.
The University of Michigan released its November consumer survey data on Wednesday, indicating that one in four respondents "cited inflationary erosions of their living standards" this month. The index is currently at 67.4%, down from 71.7% in October.
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"Consumers expressed less optimism in the November 2021 survey than any other time in the past decade about prospects for their own finances as well as for the overall economy," said University of Michigan Surveys of Consumers chief economist Richard Curtin in a statement.
"The decline was due to a combination of rapidly escalating inflation combined with the absence of federal policies that would effectively redress the inflationary damage to household budgets," Curtin continued. "While pandemic induced supply-line shortages were the precipitating cause, the roots of inflation have grown and spread more broadly across the economy."
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Also on Wednesday, the Personal Consumption Expenditures price index – which the Federal Reserve uses as its inflation gauge – reached its highest level in 31 years, soaring 5% on the year through last month.
FOX Business' Megan Henney contributed to this report.