By Arlenys Tabare
Over the past 12 months, Americans have faced continued high prices on basic goods due to high inflation, added costs to bills from high tariffs and strong economic uncertainty due to the conflict in the Middle East, which has led to consumer confidence slowly fading.
According to the results of the University of Michigan consumer survey, The consumer confidence index fell to the lowest levels during the month of Mayranking at 44.8 points out of 48.2 since the beginning of the year.
For this second term of President Donald Trump, the affordability crisis and the dizzying increase in crude oil and gasoline have dissatisfied the American population, who feels frustrated by the economy.
In this regard, Joanne Hsu, director of Consumer Surveys, pointed out that “the cost of living continues to be a primary concern, since 57% of consumers spontaneously mentioned that high prices were depleting their personal financescompared to 50% last month,” he said.
Between buying food, paying rent or mortgage, large credit card debt, and using emergency savings for essential expenses, the financial stability of the average population has been undermined.
Given this, Christopher Rupkey, chief economist at FWDBONDS, commented that “consumers continue to spend, but the cost of living crisis means that every dollar they have in their pockets goes towards covering basic needs, with no money left for leisure or vacations. Income tax refunds must have already been exhausted or the money has been spent on the higher prices seen everywhere in the economy“, said.
Regarding inflation expectations, consumers assure that it will increase by 4.8% next year and in the next five years, 3.9%.
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