American consumers are showing slightly less confidence in the future of the nation’s economy, even though inflation is technically easing, the economy is growing, and interest rates are expected to be reduced.
The University of Michigan’s consumer-confidence survey declined to 76.5 in mid-March from 76.9 last month, reflecting a less optimistic outlook for the future.
The reading was not as positive as anticipated by economists.
Opinions on the current economic conditions remained unchanged, meanwhile.
The index’s dimness is surprising given the positive economic conditions.
The rate of inflation slightly exceeded expectations for the previous month, but it still remains significantly lower than the high levels experienced last year.
Economists anticipate that inflation will continue to decrease in the upcoming months, signaling the anticipated initiation of interest-rate reductions by the Federal Reserve.
In contrast to many other developed economies, the U.S. economy has shown resilience, growing over 3% in the last months of the previous year, despite the prevailing high rates.
According to Hsu, consumers seem to be waiting to see how the economy will fare before the upcoming presidential elections.
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