US consumer sentiment ticks down slightly, but most expect inflation to ease further
Source: ABC News/AP
March 15, 2024, 10:24 AM
WASHINGTON -- Consumers became slightly less optimistic about the economy this month, though they continue to expect inflation to cool further, a potential sign that price increases will keep slowing.
The University of Michigans consumer sentiment index, released Friday in a preliminary version, slipped to 76.5 in March, barely below February's figure of 76.9. Americans' outlook has essentially remained fixed since January, when it leapt higher. Sentiment is now about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages.
Americans' outlook on the economy will likely have a significant effect on the presidential race, which will likely focus heavily on perceptions of President Joe Bidens economic record.
Friday's consumer sentiment figure follows inflation reports this week that showed that for a second straight month, prices rose at a pace faster than is consistent with the Federal Reserve's 2% target. The consumer price index rose 3.2% in February compared with a year ago, up from 3.1% in January.
Read more: https://abcnews.go.com/US/wireStory/us-consumer-sentiment-ticks-slightly-expect-inflation-ease-108154899
CountAllVotes
(20,875 posts)I was at the grocery store yesterday.
Most of the items I usually buy (at WINCO mind you) were up as much as 10-15% in some cases.
I wish that they'd be honest about it.
All Mixed Up
(597 posts)You realize this is consumer sentiment, right? They're the ones saying they expect inflation to cool. Nothing dishonest about it.
CountAllVotes
(20,875 posts)That is who.
BumRushDaShow
(129,054 posts)(at least where I am) that have dropped in the supermarket like eggs, poultry and seafood (the latter usually being a higher cost item).
I expect it is more a "regional" thing dependent on the production/wholesale sources.
All Mixed Up
(597 posts)Trump, if you don't round up, came very close to being the first (consumer sentiment for October, 2020 was 81.8).
10/20: 81.8 - Trump lost
10/12: 82.6 - Obama won
10/04: 91.7 - Bush won
10/96: 96.5 - Clinton won
10/92: 73.3 - Bush lost
10/84: 96.3 - Reagan won
10/80: 75.0 - Carter lost
So, these numbers are improving overall (maybe not month to month but March, 2023 it was 62) but still below where Biden probably would like it for reelection.
Comparing March's numbers to other presidents running for reelection:
Biden: 76.5
Trump: 89.1
Obama: 76.2
Bush: 95.8
Clinton: 93.7
H.W. Bush: 76
Reagan: 101
Carter: 56.5
So, Biden is out-pacing Obama (barely) in terms of reelected presidents. He's similar to H.W. Bush but that doesn't tell the whole story as in March, 1991 sentiment was 87.7, so while it was at Biden's levels, unlike Biden, Bush's numbers were dropping - and would throughout the rest of the year.
The best example right now is Obama. He saw improvements like Biden. In March, 2011 it was 67.5.
Carter was at a horrible level and Bush and Trump at very high levels for candidates who would either lose reelection or barely win.