Consumer Confidence Falls To Lowest Level In 28 Years
Troubling all around, lower confidence and ongoing inflation worries.
– Ian Lyngen, Interest Rate Strategist, RBS Greenwich Capital
This morning the Reuters/University of Michigan Consumer Sentiment Survey fell to 59.5 – down from 62.6 in April and its lowest level since June 1980.
Not only that, but one year inflation expectations surged to 5.2% – the highest since February 1982 – from 4.8% in April. If inflation expectations start to surge that becomes a disaster as people hoard goods and services, don’t want to hold money and don’t trust the value of the currency for doing business. Big, big problem and very hard to change once it takes hold.