The University of Michigan’s Consumer Sentiment Index, which measures how American consumers view their finances and prospects for the general economy, fell. 66.8, the lowest in 10 years, from 71.7 last month—a drop that a chief economist for the index said. said Friday was caused by rising prices of goods and services and a lack of policies that consumers believe can address skyrocketing inflation.
Economists polled by Businesshala expected the index Growth Up to 72.5 in November.
One in four consumers said inflation lowered living standards as beef and fuel oil prices rose 20.1% and 59.3%, respectively, in October from the previous year. Statement Released with report.
Lower living standards had the greatest impact on low-income Americans and older consumers, said Richard Curtin, chief economist who worked on the survey, said in the statement.
Curtin said half of American households projected to bring home a smaller income in the next year after adjusting for inflation.
Curtin said the decade-low consumer sentiment was due to “rising inflation rates” and a growing belief among consumers that “no effective” policies have been put in place to reverse the trend.
According to the Bureau of Labor Statistics, the preliminary index comes as consumer prices rose 6.2% in October compared to the same month last year, the fastest annual pace in 30 years.