Americans consider it the worst time to make significant purchases in decades, according to new figures from the University of Michigan.
Consumer confidence in the United States rose slightly across the board at the beginning of this month, according to the university’s monthly poll. But the sentiment remains close to its lowest level in nearly a decade.
The sharp rise in consumer prices, in particular, weighs on Americans’ willingness to buy. Whether it concerns consumer durables, houses or motor vehicles, the current conditions are perceived as very unfavourable for all these purchases.
The fact that life has become more expensive is related to the enormously increased demand for raw materials. As a result, the prices of these raw materials have risen sharply. International freight rates have also risen sharply. Many people think that the situation with regard to prices will only get worse shortly. Consumers expect inflation to pick up further in the coming year, reaching its highest level since 2008.
The survey also looked at how people feel about the outlook for the economy as a whole. Last month, US consumer confidence took another hit. This decline in confidence was partly caused by concerns about the increasing number of infections with the Delta variant of the coronavirus.