By Lindsay Dunsmuir
(Reuters) – US consumer confidence fell to the second-lowest level in a decade in early January as families worried about rising inflation and doubted the government’s economic policies’ ability to contain it, a poll showed on Friday.
The University of Michigan’s initial reading of its Consumer Confidence Index fell to 68.8 in the first half of this month from a final reading of 70.6 in December.
Low-income households had a negative outlook than the wealthy, feeling less than 9.4% in households with a total income below $ 100,000, but increased by 5.7% in households above that limit.
According to a Reuters poll, economists have forecast a small drop of 70.0 on the index.
Despite the strong overall economy, Americans are facing a number of dizziness, with inflation at the top of the list of worries amid a record level of Govt cases coming in with a sharper setback than expected. .
“While delta and omega varieties have certainly contributed to this downward shift (in optimism), the decline has been attributed to rising inflation,” said Richard Curtin, director of research.
“Three-quarters of consumers in early January estimated inflation as the most serious problem facing the country, compared to unemployment,” he added.