COVID-19, supply chains and the labor crisis will suffocate American consumers until 2022 – Investigation

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The Delta variant of the coronavirus has disrupted supply chains and a continued tightening in the labor market will continue to stifle U.S. consumer confidence next year, the University of Michigan said in its latest U.S. consumer survey.

WASHINGTON (UrduPoint News / Sputnik – October 15, 2021) The Delta variant of the coronavirus has disrupted supply chains and a continued tightening in the labor market will continue to stifle U.S. consumer confidence next year, the University said of Michigan in its latest consumer survey of The Americans.

“Consumer sentiment for the past three months has remained at the lowest recorded for the first time in response to the shutdown of the economy last year,” said Richard Curtin, chief economist at the University of Michigan , about the results of the poll released on Friday. “The Delta variant, supply chain shortages and reduced labor market participation rates will continue to slow the pace of consumer spending through 2022.”

The University of Michigan Consumer Sentiment Index stood at 71.4 in its preliminary October reading, down from 72.8 in September and 81.8 in October 2020. This represented a decline of 1.9% on the month and 12.7% over the year.

Consumers make up 70% of the U.S. economy, and the survey typically tells the story of their spending mood – a critical factor in an economy emerging from disruptions in measures being taken to combat the coronavirus pandemic.

The survey results somewhat shocked U.S. retail sales figures for September released by the Commerce Department on Friday, which showed nearly 14% year-on-year growth and a steady monthly expansion of 0.7% since August.

Economists polled by US media had expected a 0.2% monthly drop in retail sales in September due to the challenges of the pandemic, especially inflation due to the surge in commodity prices led by oil at seven-year highs above $ 80 a barrel.

Instead, almost all key sectors of the economy saw positive sales in the past month, which is promising ahead of the holiday shopping season which typically runs from October through December when festivities such as Halloween. , Thanksgiving and Christmas take place.


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