Americans’ Economic Outlook Brightens as Inflation Slows – RVBusiness – Breaking RV Industry News
WASHINGTON — After an extended period of gloom, Americans are starting to feel better about inflation and the economy — a trend that could sustain consumer spending, fuel economic growth and potentially affect President Joe Biden’s political fortunes, according to an Associated Press report.
A measure of consumer sentiment by the University of Michigan has jumped in the past two months by the most since 1991. A survey by the Federal Reserve Bank of New York found that Americans’ inflation expectations have reached their lowest point in nearly three years. And the same survey, released last week, found that the proportion who expect their own finances to improve a year from now is at its highest level since June 2021.
Economists say consumers appear to be responding to steadily slower inflation, higher incomes, lower gas prices and a rising stock market. Inflation has tumbled from a peak of around 9% in June 2022 to 3.4%. According to the Federal Reserve’s preferred price gauge, inflation has reached the Fed’s annual 2% target when measured over the past six months.
What’s more, paychecks have outpaced inflation over the past year, thereby easing Americans’ adjustment to a higher cost of living. Weekly earnings for the typical worker — halfway between the highest and lowest earners — rose 2.2% last year after adjusting for inflation, the government reported last week. By that measure, inflation-adjusted pay is 2.5% higher than before the pandemic.
Click here to read the full Associated Press report.
