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The feeling of the consumer received another success in March when the concerns intensified about inflation and a stock market, according to the latest feelings of the University of Michigan published on Friday.
The survey published a Reading from the month of 57.9which represents a 10.5% decrease from February and was below the Dow Jones consensus estimate for 63.2. The reading was 27.1% below one year and was the lowest since November 2022.
Although the current conditions index fell 3.3% less severe, the measure of expectations for the future was off 15.3% monthly and 30% of the same period in 2024.
In addition, fears grew on where inflation is directed when President Donald Trump institutes rates against US commercial partners. The new duties on aluminum and steel entered into force on Wednesday, and the president this week also threatened 200% of tariffs in the European Union’s liquor after the EU hit the American whiskey and other goods with 50% of taxes.
The perspective of one year increased to 4.9%, a high percentage point of 0.6 since February and the highest reading since November 2022. On the five -year horizon, the perspective increased to 3.9%, a higher percentage point for the highest level since February 1993.
The stocks were largely brushed The report, which remained in positive territory, while treasure yields moved higher.
Although the measure is often prone to disparities between the parties, the survey officials said the feeling collapsed through partisan lines along with practically all demography.
“Many consumers cited the high level of uncertainty around politics and other economic factors; frequent turns in economic policies make it very difficult for consumers to plan for the future, regardless of the political preferences of one,” said the director of surveys, Joanna Hsu. “Consumers of the three political affiliations agree that the perspective has weakened since February.”
Expectations fell 10% for Republicans, 24% for Democrats and 12% for independents, HSU added. The feeling in general has fallen by 22% since December.
The inflation perspective contradicts reports earlier this week that show that consumer prices increased less than expected, while wholesale prices were stable in February.
The markets expect to a large extent that the Federal Reserve, whose objective is an inflation rate of 2%, remain waiting when you conclude its two -day meeting on Wednesday. However, merchants have a price at 0.75 percentage cuts of interest at the end of the year, starting in June, according to the CME group’s future price meter.
