Synopsis
The University of Michigan’s Surveys of Consumers showed the public mood.
US economy’s outlook doesn’t look bright and there are probability that recession may set in coming times, experts have claimed.
U.S. consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of President Donald Trump’s trade policy. The economy contracted in the first quarter for the first time in three years amid a flood of imports as businesses tried to beat the higher costs associated with tariffs. Retail sales were almost flat in April, Reuters reported.
“The consumer is plainly worried and reading between the lines it is not just price increases that are worrying, it is the fact that many goods may be impossible to find as the reduction in port activity means shortages could develop within months,” said Christopher Rupkey, chief economist at FWDBONDS.
“The outlook continues to darken and one wonders how long this can continue before the economy actually slips over the edge into recession,” Rupkey said.
The University of Michigan’s Surveys of Consumers on Friday showed a significant decline in morale among Republicans, suggesting that even Trump’s base was becoming concerned with the president’s sweeping tariffs, which this week led retail giant Walmart to warn that it would start raising prices at the end of month because of increased costs from import duties.
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It was the first time that sentiment dropped among Republicans since Trump’s November 5 electoral victory. The continued slump in overall sentiment and jump in inflation expectations suggested a retrenchment in consumer spending was probably underway that could temper economists’ expectations for a rebound in economic growth this quarter.
FAQs
Q1. Who is President of USA?
A1. President of USA is Donald Trump.
Q2. Which university conducted Surveys of Consumers?
A2. The University of Michigan has conducted Surveys of Consumers.
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