The sharp rise in the price of gasoline is pushing Americans to review their vacation plans. (©AFP)
Rising gas and food prices are undermining consumer sentiment.
Confidence is a fragile thing, it “is gained in drops and lost in liters”, as Jean-Paul Sartre said. American consumers didn’t prove it wrong. Their confidence deteriorated significantly in June, according to the index of the Conference Board, this think tank, or center of expertise, very popular across the Atlantic in terms of the economy.
The confidence index fell to 98.7, down 4.5 points from that of May. It is thus at its lowest level since February 2021. Admittedly, the component measuring the perception of the current economic situation remained stable, but that assessing the future economic situation fell by 7.3 points to 66.4, its lowest level since March 2013.
Inflation eats away at income
“The expectations index continued its downward trajectory, falling to its lowest point in nearly a decade,” said Lynn Franco, senior director of economic indicators at the Conference Board. This more gloomy perception of the future economy is due to growing concerns about inflation [+ 8,6% en mai sur un an glissant, son plus-haut depuis 1981]in particular the rise in gasoline and food prices.”
Moreover, “holiday plans have further softened as the rise in prices takes its toll,” she adds. However, for the record, household consumption represents
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