US consumer confidence hits 11-year low

By Gokhan Ergocun

ISTANBUL (AA) - The US consumer sentiment index, which is calculated by the University of Michigan, fell to 58.4 in May, decreasing from 65.2 in April.

According to fresh figures on Friday, the index dropped by 10.4% on a monthly basis and 29.6% yearly to its lowest level since August 2011.

"This recent drop was largely driven by continued negative views on current buying conditions for houses and durables, as well as consumers' future outlook for the economy, primarily due to concerns over inflation," said Joanne Hsu, the director of consumer surveys at the university.

She stressed that many consumers are less pessimistic on improving their financial situation over the next five years.

The report added that indices of the current economic conditions and consumer expectations were also down to 63.3 and 55.2, decreasing by 29.2% and 29.9% in May 2021.