Consumer sentiment in the US has fallen to a record low as inflation takes its toll on the world’s largest economy.
A closely watched index of consumer sentiment dropped sharply this month as anxiety rose over sustained price growth and the prospect of a recession. The index, compiled by the University of Michigan, fell from 58.4 in May to 50.0 in June. A year ago, it stood at 85.5.
It comes as the Federal Reserve steps up its battle to contain inflation, which is at the highest level for a generation. Policymakers at the central bank ordered America’s largest interest rate rise in three decades last week, lifting the benchmark rate by 75 basis points.
Inflation expectations among consumers — a key consideration