Consumer Behavior | Weekly Excerpt

Week of June 20-24

"Consumers of all incomes, ages, education levels, geographic regions, political affiliations, stock holdings and homeownership statuses recorded large declines." University of Michigan Director of Consumer Surveys Joanne Hsu said.

Basically, about 79% of consumers expect poor business conditions in the coming year, the highest level since 2009. 47% of consumers attributed the reduction in their living standards to inflation.

The consumer

As a result of these experiences and recent events, such as the aforementioned interest rate hikes Last week's consumer behavior reflects that they now have a lower expectation of future inflation rate at 3.1% compared to the 3.3% surveyed earlier in the year.

Accordingly, the trend, as shown in the stock market, is negative, and according to Goldman Sachs economists, led by Jan Hatzius, say the risk of a U.S. recession is increasing to 30% from the previously estimated 15%.