Affected by inflation, epidemic and other factors! U.S. consumer purchasing power declined in August!

It is learned that according to foreign media reports, with the resurgence of inflation and the epidemic in the United States, the purchasing power of American consumers continued to be sluggish in August. According to the consumer sentiment research of the University of Michigan in August, the final value of the purchasing sentiment index of American consumers was 70.3. The final value in August was 13.4% lower than that in July, which is the most pessimistic economic outlook for the United States in more than a decade.

It is understood that since 1978, the consumer purchasing sentiment index has only been lower six times. But the decline in the index this time is particularly large and is common among all population groups and regions in the United States. This is due to the fact that under the trend of higher inflation, American consumers' income gains have decreased and their personal financial prospects have continued to deteriorate, resulting in a decline in purchasing power.

Richard Curtin, chief economist of the University of Michigan Consumer Survey, said consumers' purchasing power continued to be sluggish in August, affected by the resurgence of the epidemic, higher inflation, slower wage growth and lower unemployment.

Richard Curtin further stated that the decline in consumer purchasing power in August does not mean that the U.S. economy is about to enter a recession. The consumer purchasing sentiment index also saw a similar decline in September 2005 (13.7% in 2005) due to the damage caused by Hurricane Katrina and rising energy prices, but this did not lead to a recession in the U.S. economy.

It is learned that according to the University of Michigan's August consumer sentiment study, the US economic decline is expected to begin to improve at the end of the year, but the downward trend in US consumer purchasing power may continue for some time in the future.

Editor ✎ Nicole/

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