Surging prices, a labor shortage and a gummed-up supply chain are making Americans uneasy.
The consumer sentiment index fell to a decade low over the past month, according to the University of Michigan. The culprit: pandemic-era inflation and worry that no policies are in place to rein it in. Consumers had also expected the supply chain crisis and labor shortage crunch to be resolved by now.
The negative sentiment about the challenges to the US economy outweighed many of the positive factors, including surging job growth and growing paychecks.
One in four people surveyed said inflation has worsened their living standards. Despite higher paychecks, half of respondents said they expect inflation to wipe out whatever wage gains they were given over the past year.
Consumers complained about rising prices for homes, cars and other durable goods like appliances more than any point in more than 50 years, according to Richard Curtin, the University of Michigan’s Surveys of Consumers chief economist.
This is a developing story. It will be updated.
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