US consumer sentiment falls slightly as outlook for inflation worsens

2024-12-24 09:44:58 source: category:My

WASHINGTON (AP) — Consumer sentiment about the U.S. economy has ticked down but remains near a recent high, with Americans’ outlook largely unchanged this year.

The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, slipped to 77.9 this month, down from March’s figure of 79.4. Sentiment is about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages.

“Consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy,” said Joanne Hsu, director of the consumer survey.

An increase in gas prices likely contributed to the decline in consumers’ outlook, according to Ian Shepherdson, chief economist at Pantheon Macroeconomics. The average national price of a gallon of gas has jumped about 7% from a month ago, according to AAA, to $3.63 a gallon.

Americans’ perceptions of future inflation also edged up, probably reflecting still-elevated prices. Consumers expect inflation to be 3.1% a year from now, which would exceed the Federal Reserve’s 2% target. Still, that would be below the current level of 3.5%.

More:My

Recommend

The Office's Kate Flannery Defends John Krasinski's Sexiest Man Alive Win

Kate Flannery is giving a Dundie for hotness to John Krasinski. The Office alum couldn't help but gu

Dozens are presumed dead after an overloaded boat capsizes on Lake Kivu in Congo

KINSHASA, Congo (AP) — The majority of the 50 passengers aboard a wooden boat that capsized on a lak

AP PHOTOS: As Carnival opens, Venice honors native son Marco Polo on 700th anniversary of his death

VENICE, Italy (AP) — Venice is marking the 700th anniversary of the death of Marco Polo with a year