USA: Slowdown in inflation in many parts of the world lifted global consumer sentiment from recent lows. Falling energy prices and tight monetary policy have resulted in a cap on price increases.
But as the global economy is expected to slow down in 2023, strong policy measures implemented by central banks around the world will also dampen demand.
The Morning Consult Germany Consumer Sentiment Index rose 11.4% between November and December, the largest increase in consumer confidence ever.
Also Read: india likely to become usd7 tn economy in 7 years
The general slowdown in inflation across the continent has resulted in ICS increases in 13 of the 16 European countries Morning Consult tracks.
The five factors that make up the consumer sentiment index increased in the United States, highlighting the breadth of the confidence restoration in December.
Also Read: World bank weighs in on transition amid weak global economy
Despite a rebound in recent weeks, the Morning Consult China Index of Consumer Sentiment was down 10.9% from where it began on January 1 for the end of 2022.
Also Read: PIF: Saudi investment company ups its ownership of Nintendo to 6%
In early 2023, declining inflation and related expectations should support greater consumer confidence worldwide, but a potential increase in worldwide unemployment later this year will probably have a negative impact on confidence even as inflation cools.