There was a huge dropoff in consumer sentiment over the past month, according to a new survey from the University of Michigan.
What’s more is that the dropoff appears to be the result of the astronomical inflation that Americans have been experiencing under President Joe Biden’s leadership.
The Department of Labor’s most recent report put inflation at 8.3%, which is at about a 40-year high. In terms of real money, Moody’s Analytics recently found that the average American is paying an extra $311 per month as a result of this inflation.
What the University of Michigan found is that consumer sentiment dropped from 65.2% to 59.1%. That’s a 9.4 percentage point dropoff from April 2022 to May 2022, and it is a 28.7 percentage point dropoff from May 2021 to May 2022.
“These declines were broad-based–for current economic conditions as well as consumer expectations, and visible across income, age, education, geography, and political affiliation–continuing the general downward trend in sentiment over the past year,” the university reports.
On top of this, there was also a dropoff in how U.S. consumers view their current economic condition, from 69.4% in April to 63.6% in May. That’s a month-over-month dropoff of 8.4 percentage points and a year-over-year dropoff of 28.9 percentage points.
Finally, the university found that there was a 9.9 percentage point dropoff in consumer expectations, from 62.5% in April to 56.3% in May. This, also, is a year-over-year dropoff of 28.6 percentage points.
According to the university, inflation played a large role in these numbers.
Breitbart News provides some perspective on just what the University of Michigan’s survey shows.
The outlet reports:
The University of Michigan’s index of consumer sentiment plunged 9.4 percent in the early weeks of May, falling from a score of 65.2 to 59.1. That kind of plunge is rare outside of a catastrophe or a recession. It is the lowest reading since summer of 2011 when the country was locked in a battle over the debt ceiling and Standard & Poor’s downgraded the credit rating of the United States.
This is horrible news for President Joe Biden and his fellow Democrats.
Polls have consistently found that Americans view the economic crisis as one of the most important issues if not the most important issue heading into the midterm elections.