Consumers haven’t felt this bad about the economy since November | CNN Business
May 10, 2024
"Consumer sentiment plunged to the lowest level in six months as price increases reaccelerated, according to the latest University of Michigan survey of consumers, released Friday.
Additionally, consumers are bracing for even higher price increases in the year ahead compared to readings from prior months, the survey found.
The gauge, which is
closely tracked by the Biden administration, plunged 13% from April’s 77.2% reading, to 67.4%. That’s the biggest one-month drop since mid-2021. Economists polled by FactSet were expecting consumer expectations to fall to just 76.9%."
"Consumers are expecting mortgage rates to continue climbing and are
indefinitely putting off purchasing a home, according to a New Fed survey released earlier this week. Renting is also far from a bargain these days. Consumers are gearing up for even bigger increases compared to the expected rise in mortgage rates over the next year, the survey found.
Additionally, in many parts of the country, the pace of rent increases is eroding recent wage gains.
Another worrying sign is the rising rate of consumers
becoming delinquent on expenses such as auto loans, credit card bills and rent. The New York Fed will release new data on household borrowing and indebtedness on Tuesday at 11 am ET."
