Inflation expectations, which the Federal Reserve watches closely, also moved higher early this month and 46% of respondents attributed their negative views to persistent price pressures.
“Throughout the survey, consumers signaled strong concerns that inflation will continue to erode their incomes, and the factors they cited are unlikely to abate soon,” Joanne Hsu, director of the survey, said in a statement.
“While consumer spending has remained robust so far, the broad deterioration of sentiment may lead them to cut back on spending and thereby slow down economic growth,” Hsu said.
“These expectations rose despite, leading into the Federal Reserve’s policy-setting meeting next week, a record high 88% of consumers expecting interest rates to increase during the next year,” Hsu said.
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source: The Spokesman-Review