Despite recent disappointing inflation reports that have shaken Wall Street, Americans’ sentiment about the economy remained relatively steady in April, with a slight dip in the preliminary reading from 79.4 to 77.9, according to a consumer survey from the University of Michigan. This is noteworthy considering concerns about inflation reaching 40-year highs.
Joanne Hsu, the director of the university’s Surveys of Consumers, said that sentiment has remained flat for the fourth consecutive month as consumers have not observed significant changes in the economy. Many consumers are holding off judgment on the economy, especially with the upcoming election, which they believe could heavily influence the economic trajectory.
According to Hsu, expectations of inflation rates among US consumers have only increased slightly in April. The Federal Reserve is paying attention to whether Americans believe that inflation will eventually return to levels they are accustomed to. The story is still developing and will be updated.
