[국제]Consumer sentiment pointing to recession… US stocks plunge

The New York stock market also plunged in the second half of the day as the US Consumer Sentiment Index fell to its lowest level in 16 months.

It is analyzed that consumer sentiment has already begun to freeze despite the claims of financial authorities that a recession can be avoided.

This is the report by Kwon Joon-gi.

The US Consumer Confidence Index fell to 98.7 in June, the lowest since February last year.

The Consumer Confidence Index is an indicator of consumers’ perception of the economic situation. A reading below 100 indicates a contraction in consumption.

In particular, the ‘expectation index’, which represents the short-term outlook, fell sharply to 66.4 from 73.7 last month, the lowest figure in nearly 10 years.

It is predicted that consumers are highly likely to close their wallets as inflation-induced price increases are seldom caught.

Analysts said concerns over rising gasoline and food prices were driving the decline in consumer confidence.

In particular, the sharp drop in the ‘expectation index’ suggests that the risk of a recession will increase until the end of the year.

The indicator continues to glow red, but the US Federal Reserve is still denying the possibility of a recession.

In an interview with CNBC, the Fed’s third-placed president, John Williams, the governor of the Federal Reserve Bank of New York, said the economy is strong and financial conditions have tightened, saying he was confident there would be no recession, even if it was just a slowdown.

But investment pundits like Cash Wood have already diagnosed the US into a recession due to higher-than-expected inflation and unprecedented inventory problems.

The New York stock market declined all at once, with the Nasdaq dropping nearly 3%p, reflecting the uncertain market outlook.

This is Kwon Jun-ki from YTN.

YTN Junki Kwon ([email protected])

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