American consumers have never been this pessimistic about the economy, with the Michigan University’s consumer confidence index plunging to a record low, as soaring inflation erodes household purchasing power and threatens a cost-of-living crisis.
The Michigan University’s consumer sentiment index fell from a reading of 58.4 in May to just 50.0 in June, a record low. The dismal reading represents a month-over-month drop of 14.4 percent and a year-over-year decline of 41.5 percent.
While all components of the sentiment index fell, the sharpest decline was in the year-ahead outlook for the U.S. economy, which fell 24 percent between May and June, according to Michigan University economist Joanne Hsu, director of the consumer confidence survey….