US consumer confidence climbs for fifth consecutive month, short-term inflation expectations rise to 2.9%

Joanne Hsu, director of the University of Michigan's consumer survey, said consumer confidence rose for the fifth consecutive month, reaching its highest level in seven months. The surge in durable goods purchasing conditions has caused the Current Economic Conditions Index to soar more than 20%. However, the situation is not a sign of economic strength, but rather because consumers believe that buying now will prevent future price increases. One-year inflation expectations rose to 2.9% this month from 2.6% last month, the highest in six months, but still within the 2.3%-3.0% range seen in the two years prior to the epidemic. Longer-term inflation expectations fell slightly, from 3.2 per cent last month to 3.1 per cent this month, which is still slightly higher relative to the range seen in the two years prior to the epidemic.