The University of Michigan index stood at 66.8 points, down from 71.7 in October. Analysts had not anticipated such a plunge.
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The confidence of American consumers fell in November to its lowest level in ten years, due to inflation at its highest in 30 years, which is reducing their purchasing power, a subject prioritized by Joe Biden.
The index stands at 66.8 points, against 71.7 in October, according to the preliminary estimate of the University of Michigan survey released on Friday. Analysts had not anticipated such a plunge, and expected an index unchanged from the previous month.
Consumers are worried about rising prices in the United States, and this is unlikely to slow for months.
They also have “the growing conviction (…) that no effective policy has yet been put in place to reduce the damage” caused by this inflation, described in the press release Richard Curtin, the economist in charge of this survey very followed by the markets.
In detail, the index measuring confidence in current conditions stands at 73.2 points (-5.8%), that measuring that in the outlook falls to 62.8 points (-7.5%).
“The rise in the prices of houses, vehicles and durable goods, has been reported more frequently (by consumers surveyed) than at any other time for more than half a century”, further details Richard Curtin.
In October, prices experienced their largest increase since November 1990: they increased by 6.2% compared to October 2020, after 5.4% in September, according to the CPI index of the labor department.
Joe Biden signaled on Wednesday that his “top priority” was “to reverse the trend of inflation,” which “hurts Americans’ wallets.”
The occasional closures of factories linked to Covid, the congestion of ports caused by the shortage of truckers combined with a strong demand for imported products have considerably increased in recent months the costs of shipping food, furniture, cars, energy and a myriad of other products.
These costs were passed on in part to consumers.
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