New York (awp / dpa) – US consumer confidence improved very slightly in December, thanks to expectations of low-wage workers hoping for increases, the University of Michigan survey said on Friday.
However, the index, which remains on average for the last four months, stood at 70.4 points at 67.4 points, slightly better than expected by analysts who forecast 66 points.
“When asked ‘of respondents’ whether inflation or unemployment is the most serious problem facing the nation, 76% chose inflation while only 21% chose unemployment,” said the investigation.
Consumer prices in the United States rose in November at an unprecedented rate in nearly 40 years to 6.8% last month compared to November 2020, after + 6.2% in October, according to the price index Consumer Affairs (CPI) released Friday by the Labor Department.
“The predominance of concerns about inflation over that of unemployment was true for all subgroups of income, age, education, region and political orientation,” adds the economist responsible for the Richard Curtin inquires.
Very unusual point, the survey revealed “a great disparity” between social categories. Households with the lowest incomes on the pay scale are much more optimistic (the index climbs 23.6% for this group) than households in the middle class (-3.8%) and upper (- 4.3%) who fear a deterioration in economic conditions.
For Richard Curtin, this reflects expectations of increased pay from employees earning low wages. “This suggests the emergence of a wage-price spiral which could propel inflation upwards in the years to come,” warns the economist.
afp / buc
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