TechFlow news, on March 14, according to Jinshi Data, John Velis, a strategist at Bank of New York Mellon, said the decline in the University of Michigan Consumer Sentiment Index was "disheartening." He noted that particularly concerning was the rise in long-term inflation expectations, which had previously remained relatively stable.
As consumer confidence wavers, weakening demand may begin to manifest in the real economy—a phenomenon already visible in certain sectors such as air travel. According to inflation data released this week, airfare prices declined in February.
Regarding consumer sentiment surveys, Velis stated: "A lot of cyclical evidence shows these indicators aren't great predictors, but you can't ignore the overall downturn and the reasons behind it."
