Economic Outlook Drops To Lowest Of The Year As Inflation Expectations Surge

Tyler Durden's picture

University of Michigan Consumer Confidence came modestly higher than expected and limped higher off the lowest levels of the year. However, aside from this apparently positive event (accoding to some media pundits), there are two worrying things shifting rapidly. Consumer outlook for the economy (as opposed to current conditions) dropped to their lowest of the year with the largest 3-month drop in 11 months (so much for hope?); and inflation expectations soared by the most in 17 months.

Consumer's outlook for the economy is plunging...


while their expectations of inflation are soaring...


Charts: Bloomberg

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AlphaDawg's picture

Jive Talkin. The average Bufty McGrufty/ Granny Gruff anit too concerned about the economy or inflation.

economics9698's picture

Kill the politicians and central bankers.  WTF else is there to say?

AlphaDawg's picture

Ur livin in a fantasy mate,


Go for a walk and cool off.


Either sit back and get screwed or leave, your choice

camaro68ss's picture

I see a FEMA camp for you in the near future....

AlphaDawg's picture

yeah mate, you wish.

I aint goin to no FEMA camp, I am out of the states now, all you pussys can sit tight waiting for the FEMA boys to come and put you onto a train to the camp.

Haha......look at yourself! Have a good weekend

TrustWho's picture like Ecuador's embassy in London. Watch out for the drone. You can run, but you can not hide.

AlphaDawg's picture

Yeah man, but id rather get droned than FEMA'd

economics9698's picture

Everyone thinks because the bankers have the toys its game over.  The fucking Iraqis held off the US military 5 years with AK-47's, roadside bombs, and 30-06 sniping at 200-300 yards.

You going to tell be 200 million armed red necks could not overthrow the government?

Get fucking real dude.

When the fiat dies the bankers army goes with it.


madcows's picture

Er, do you mean Afganis?

They'll never go away.  They'll just assume control of the next regime.  Look at Egypt.  Look at Afganistan.  Look at Iraq.  You can fight back all you want, but the crooked and well armed will always assume control.  It's only a matter of time.

TrustWho's picture

Why not screw someone (the lay type) before you leave. At least leave  with a smile!

Stock Tips Investment's picture

Contrary to these numbers, the investment continues to rise and the debt reduction continues to drop. Most likely we see a weak consumption for a while more. But investment and exports continue to rise while private debt will continue to decline. It's a healthier economic outlook in the long term.

madcows's picture

Overall debt has not dropped.  It's been transferred to the Government (taxpayer).  And, investments are only rising b/c of anticipated QE3.  Feel free to buy Facebook if you're so confident.

Exports aren't rising.  They're falling.  Europe is in recession.  China is in recession or headed that way.  USA is in recession (or headed that way). 

SeverinSlade's picture

I wonder if the question asked for the Consumer Confidence survey is: "How confident are you that the US government and Federal Reserve will fuck you over?"

Might explain why so many consumers are so highly confident right now.

pleseus's picture

What will the price of gas be if we get QE3?  $ 8.00 a gallon.  Yeah, that will help the economy.

Bunga Bunga's picture

What will the price for the world's political stability when wheat, rice and corn prices hit new all time highs soon?

lizzy36's picture

"Summer of George" continues.

Lost Wages's picture

Consumers who expect inflation should buy silver. Go now.

SeverinSlade's picture

This is what they SHOULD do.  But the majority of CONsumers think that a 1% yielding savings account is a good way to "protect their savings."

Lost Wages's picture

Where are these generous 1% savings accounts you speak of? Wells Fargo only gave me 0.01% back in the day and my credit union gives me 0.15%. (No, I am not rich as many people on this site. I've had a very austere decade.)

madcows's picture

My bank is paying such a low rate, that I didn't even have to pay taxes on my interest!  BOOYAH!

Cognitive Dissonance's picture

Wash your mouth out with soap. The Fed says there is NO inflation.

Dr. Engali's picture

They also said gold is not money.

malikai's picture

They also said I could be anything I wanted.

Cognitive Dissonance's picture

It seems Ben flunked history...........or he's just really really really in denial.

"Currently, most modern monetary systems are based on fiat money. However, for most of history, almost all money was commodity money, such as gold and silver coins."

Doubleguns's picture

Bush did it!!


But he could not have done it without govts help. Barack Obama




madcows's picture

The WHOLE government did it, with the Help of the FED.  Quit being so gullible.

Hype Alert's picture

They should take a look at the Baltic Dry Index to get cheered up. 


No, wait..

Dollar Bill Hiccup's picture

Step right up, to the greatest show on Earth!

Never mind the bollocks!


Auburn's picture

Pishhhhh .... if the numbers aren't bullish, us muppets know nothing!  If the numbers come in great, bullish!!!  Onwards and upwards the algos shall tick.   

bnbdnb's picture

Same thing every time. Gasoline.

cosmictrainwreck's picture

yeah, wasn't it Yahoo that just hired that blonde chick to run the show....?

vertexa's picture

Marc Faber warns that “we’re in the late stage of a mature market and not a new bull.”

Beware the false rally coming soon, says world renown bear Marc Faber. He says catalysts are currently in place that could trigger an advance. “We could go to 1450 or even 1500,” Faber says. However, he warns that “we’re in the late stage of a mature market and not a new bull.”

TrustWho's picture

"American Spring" or maybe renamed to "American Fall" ....TIMMMMMMBBBBBER

apberusdisvet's picture

Factoring in the recent rises in gas and food costs (seen hamburger prices lately?), I would imagine that true CPI is now at least 12% per annum or 1% Month-to-month.

madcows's picture

Year over year by my calcs:  Food is up 11%, gas is flat (but up 30 cents in the past month).

CPI is a veriable stat.  If you live in the city and don't buy gas, your number is different than a suburbanite that drives 60 miles each day.  Keep your own records and see what your personal inflation rate is. 

Note, my cost of living is up 8+% this year, primarily on food and heating oil.


Papasmurf's picture

Inflation is out of control.  A plastic pail at Walmart costs between $6-$8.  Seems one can't afford a pot to piss in anymore.

eclecticskeptic's picture

If anyone knew what to do, they'd have done it a long time ago.


Cognitive Dissonance's picture

If anyone knew what to do what? "Fix" the system?

They don't want to "fix" the system.....unless you mean they want a system they can fix in their favor.

PiratePawpaw's picture

They "fixed" it 40yrs ago. We just arent on "their" team.

RunningMan's picture

This is exactly what's what. We aren't on the team, otherwise we wouldn't be on ZH trying to figure out how this system is going to come unstuck. All I know is there is no work right now. It's like August in Europe, only in the US people used to work. Except in August of 2008. I can't remember what was special about that year, but this feels the same as that. 

otto skorzeny's picture

and the GRRRRRRRRRRRRIND on the DJIA upward continues. be interesting to see next month's #s when Joe Six-Pack and Susie SUV have to fill-er-up for $4.25+ a gallon. time to go change the oil (myself) on the old-high mileage beauty in the garage-keep 'er runnin'

TrustWho's picture

...I predict you are going to witness a stock market flush today. Leading indicator puts Daddy Bernanke in a box. If he unleashes QE3, he will completely demonstrate his depression, total lack of confidence and basic coward persona that he may just be.

StrawberryBlonde's picture

It's not surprising when nothing is being done to create jobs.

Dr. Engali's picture

You're assuming that they want jobs created. When we live on a planet with finite resources growth is not necessarily what they want. Less economic activity equates to a slow down in usage. Eventually it will come to a point where they will put in policies to reduce the population to a more managable level.

bnbdnb's picture

Who are they in this case?

Dr. Engali's picture

TPTB. The people who really lord over us. Scary people.....people you don't want to knw.

PiratePawpaw's picture

Historicly those policies are called "WAR".