Consumers’ Expectations for U.S. Economy Drop Most Since 2013
by Michelle Jamrisko
9:45 AM EDT
May 21, 2015
Americans’ expectations for the economy slumped in May by the most since October 2013, casting doubt on consumers’ ability to revive growth.
A measure tracking the economic outlook fell by 6 points to 44 this month, data from the Bloomberg Consumer Comfort Index showed Thursday. Thirty-nine percent said the U.S. economy is getting worse, the largest share since the federal government shutdown 19 months ago.
“The increase in negative expectations occurred among a disparate collection of groups, indicating a generalized retrenchment,” Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg, said in a statement.
The weekly sentiment index dropped to 42.4 in the period ended May 17, the lowest since mid-December, from 43.5 as fewer consumers said now was a good time to spend. Such angst, particularly among lower-income households, probably has its roots in steadily climbing prices at the gas pump and limited wage gains.
“Despite positive employment and housing reports, consumer concerns may reflect still-stagnant wages as well as sharp divisions between higher- and lower-income groups in economic views,” Langer said. “The latest stumble makes clear that economic travails continue for many Americans.”
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http://www.bloomberg.com/news/articles/2015-05-21/consumers-expectations-for-u-s-economy-drop-most-since-2013