Blue Press Journal

Tag: Consumer Sentiment

  • Consumer Sentiment Plummets Amid Historic Government Shutdown

    Blue Press Journal

    November 10, 2024 — Washington, D.C.

    U.S. consumer confidence has dropped to its lowest level in nearly three and a half years, as the nation grapples with the longest government shutdown in American history. According to data released Friday by the University of Michigan’s Surveys of Consumers, the Consumer Sentiment Index fell sharply to 50.3 in early November, down from 53.6 in October — a clear sign that economic anxiety is spreading across households. 

    The shutdown, now entering its second month, has been driven by a political standoff in Congress. Republican lawmakers have refused to approve funding measures that include provisions aimed at lowering health insurance costs for American consumers. The impasse has triggered widespread disruptions across basic government services and has deepened public concern about the economic fallout. 

    For millions of lower-income households, the crisis is hitting home. Cuts to essential benefits, including food stamps, have left many struggling for food. Hundreds of thousands of federal employees have been furloughed without pay, while others work without wages. Transportation systems suffer from staffing shortages, causing flight delays and grounding aircraft, affecting travelers nationwide.

    The economic uncertainty has been compounded by shifting inflation expectations and the Trump tariffs. The survey found that consumers now expect inflation over the next year to rise to 4.7%, up slightly from 4.6% in October. Long-term inflation expectations dipped to 3.6% from 3.9%, indicating cautious optimism about price stability in the years ahead, but little relief for immediate cost-of-living pressures. 

    Republican leadership and President Trump has effectively held essential services hostage, weakening the broader economy and eroding public trust in governance. Economists warn that prolonged instability could push the country toward slower growth, higher unemployment, and sustained consumer pessimism. 

  • US Consumer Sentiment Drops off the Cliff

    US consumer sentiment has fallen to its second-lowest point in more than 70 years, signaling a concerning trend that is likely to deteriorate further in the coming months.

    The University of Michigan’s Surveys of Consumers, released on Friday, revealed that U.S. consumer sentiment took a nosedive of 11% at the beginning of April compared to the previous month. This decline was widespread and unanimous across all demographics, including age, income, education, geographic region, and political affiliation.

    The latest report indicates that overall consumer sentiment has now dropped to its second-lowest level since the early 1950s. Lindsay Owens, the executive director of the Groundwork Collaborative, expressed her concerns in a statement, emphasizing that today’s plummeting consumer sentiment numbers may just be the tip of the iceberg.

    Thanks to Trump’s reckless trade policies, markets are in chaos, retirement accounts are in shambles, and shipping orders have come to a screeching halt. Brace yourselves for price spikes, shortages, and the looming threat of a recession in the near future, according to Owens. 

    To add insult to injury, as consumers brace themselves for impending disaster, Congress is recklessly tearing apart the safety net they might desperately need when the economic catastrophe hits. President Trump isn’t just failing to lead; he’s plunging us headfirst into a reckless kamikaze mission, oblivious to the chaos he’s creating.

    If the administration can secure even a few deals in this chaotic time, we should brace ourselves for the heavy weight of drastically increased tariffs, effectively slapping tax hikes on American consumers and businesses. It is utterly baffling why the world is being forced to endure such pointless drama!