Inflation fears prompt steep drop in consumer sentiment, new poll finds

A new poll delivered some troubling economic news that could spell trouble for the Democratic Party.

According to a recent survey by the University of Michigan, U.S. consumer sentiment dropped sharply in early July as Americans grow increasingly worried about inflation. A rate that had been expected to rise by 1.5% actually fell by 5.5%.

“Added pressure on living standards”

Inflation has now replaced unemployment as the top economic concern in the poll, which registered consumer confidence at 80.8%. Consumers reported that they were less satisfied with current conditions and less optimistic about the future.

Chief survey economist Richard Curtin explained rising consumer prices have “put added pressure on living standards, especially on lower and middle-income households, and caused postponement of large discretionary purchases.”

The cost of homes, vehicles, and major appliances have all risen in recent months as the Biden administration has pushed for domestic spending bills that have dumped trillions of dollars into the economy following the steep downturn associated with the COVID-19 pandemic.

While many economists initially downplayed the possibility of long-term inflation, a growing number now believe it could last throughout 2023 — especially in the wake of news that interest rates could rise sooner and more steeply than previously thought.

The latest inflation numbers showed an annualized rate of 5.4%, which was the highest since 2008. Notably, that was the same year the federal government last dumped a huge sum of money into the economy to reverse a major economic downturn.

Other contributing factors

Current measures, however, amount to several times as much spending as in 2008, so the impact could be even more severe.

With Biden planning to include trillions more in spending prior to next year’s midterm elections, Republicans could benefit politically from the otherwise distressing economic news.

At least part of the reason for the alarming rate of inflation appears to be actual or artificial shortages that have made it difficult for consumers to purchase the goods they are seeking.

Furthermore, businesses have had a difficult time remaining fully staffed due to a rising retirement rate that coincided with a labor shortage connected to the ongoing pandemic.

Some of these disruptions could be reversed when unemployment benefits return to pre-pandemic levels, but Biden’s big-spending agenda might mean that at least some level of inflation will remain for the long term.

Share on facebook
Share To Facebook

Welcome to our comments section. We want to hear from you!

Any comments with profanity, advocacy of violence, harassment, personally identifiable information or other violations will be removed. If you feel your comment has been removed in error please contact us!

10 Responses

  1. I get paid over $190 per hour working from home with 2 kids at home. I never thought I’d be able to do it but my best friend earns over 15k a month doing this and she convinced me to try. The potential with this is endless.
    HERE ➤➤ https://Www.Fulwork.Com

    1. I am making a good salary from home $6580-$7065/week , which is amazing under a year ago I was jobless in a horrible economy. I thank God every day I was blessed with these instructions and now it’s my duty to pay it forward and share it with Everyone,
      Here is I started.…………… http://WWW.CASHAPP1.COM

      1. There is a job opportunity for everyone! You can work from the comfort of your home, using your computer. Additionally, you can work according to your schedule. You can work this job As part-time or As A full-time job. The online work can earn you up to $1000 per day. It’s easy, just follow the instructions on the home page, read it carefully from start to finish.

        Check the details…….—->>

  2. I make more then $12,000 a month online. It’s enough to comfortably replace my old jobs income, especially considering I only work about 11 to 12 hours a week from home. I was amazed how easy it was after I tried it…


  3. You Might Like
  4. I have made 96,760 Buck just last month by working online from my home. I am a full time college student and just doing this in my free time for few hours per week by using my laptop hello.Everyone can check this out and start making cash online in a very easy way by just follofdfdfdwing instructions……

    .COPY This Website….HERE══════►►►

  5. Start working at home with Google! It’s by-far the best job I’ve had. Last Wednesday I got a getting a check for $19474 this – 4 weeks past. I began this 8-months ago and immediately was bringing home at least $170 per hour. I work through this link, go to tech tab for work detail.
    Open This Website…………………………………..>> https://www.CashApp1.Com

  6. Work At Home For USA My buddy’s aunt makes $64/hr on the computer. She has been unemployed for eight months but last month her but pay check was $12716 just working on the computer for a few hours. Check The Details HERE………

  7. Democrats/liberals have done nothing but make shambles of this nation in the short time they’ve been in office !!! Isn’t it time to get a a new leader ??? American values are crumbling, economy has gone to pot, the world laughs at us and how much more ??? This administration is a loser – PLAIN AND SIMPLE !!! The voting for this party was a laugh and is proving true !!!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Posts