Optimism for Economic Future Dampened by Rising Inflation
==========

Consumer sentiment among Floridians increased in April, with positive views regarding the nation's economic outlook. Expectations about the U.S. economy over the next five years reached levels not seen since July 2021. However, rising inflation has dampened optimism. Average annual inflation surged from 1.9% to 4.8% between the first and second quarters of 2021, reaching 5.3% in the third quarter. The Fed initiated an aggressive tightening cycle in 2022 to control inflation. Floridians' opinions about current economic conditions improved, but varied by demographics. Future economic expectations portrayed a mixed outlook, with expectations of personal finances a year from now decreasing, while outlooks about the country's economy were more optimistic. The reversal in inflation trends is likely to deter the Fed from implementing interest rate cuts and could reduce consumer confidence, increasing the risk of a potential downturn. The UF study reflects the responses of 543 individuals in Florida. The index used by UF researchers is benchmarked to 1966, with a value of 100 representing the same level of confidence for that year.

#ConsumerSentiment #EconomicOutlook #Inflation #Florida

https://www.miragenews.com/optimism-for-economic-future-dampened-by-rising-1225207/