(CercleFinance.com) – The morale of American households continued to deteriorate in February, show the first results of the monthly survey by the University of Michigan, made public on Friday.
Its confidence index fell to 61.7 this month against 67.2 in January, while economists expected a figure up slightly, around 67.5.
Richard Curtin, the economist behind the survey, attributes the decline to ‘rising inflation, less confidence in the government’s economic policies and long-term economic prospects at their lowest in ten year’.
According to him, this deterioration particularly concerns households whose annual income exceeds 100,000 dollars, which the outbreak of inflation causes to worry about their financial situation.
In detail, the component of consumer judgment on their current situation fell to 68.5 from 72 in January, while that of expectations fell to 57.4 in February, from 64.1 the previous month.
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