Business Maverick: US Consumer Confidence Hits 16-Month Low on Drag From Inflation

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US consumer confidence dropped in June to the lowest in more than a year as inflation continues to dampen Americans’ economic views.

The Conference Board’s index decreased to 98.7 from a downwardly revised 103.2 reading in May, data Tuesday showed. The median forecast in a Bloomberg survey of economists called for a decline to 100.

As the Federal Reserve raises interest rates to curb price pressures, higher borrowing costs risk denting purchases for big-ticket items like homes, cars and appliances. Despite sagging sentiment, buying plans are so far holding up, the report showed. Consumers see prices in the next year rising at the fastest rate in the group’s data back to the 1980s. Separate data on inflation-adjusted consumer spending will be released Thursday.“Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement.

 

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