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How ya Feelin'? Consumer Sentiment drops more than expected in June, tariffs on the mind

Jun 14, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

  • Consumer sentiment in May fell a bit more than expected as the US-China trade war weighs more on consumers’ outlook
  • University of Michigan Sentiment Index survey of households dropped to 97.9 in early June, down from 100 in May; Bloomberg consensus was for a reading of 98.0
  • The main driver of the worsening of sentiment were the tariffs that have been put in place and threatened to expand
  • In this survey 40% of respondents spontaneously mentioned the tariffs, up from 21% in the previous month’s survey
  • The current conditions reading rose to 112.5 from 110 while expectations were for a drop to 109.0
  • Strong retail sales and industrial production data that was released today help explain the surprise current conditions reading 
  • The expectations reading, conversely, dropped much more than expected to 88.6 from 93.5 in May, consensus was for a drop to 92
  • Long-term inflation expectations dropped to 2.2% from 2.6%, the lowest reading ever for long-term inflation in this survey
  • The director of the survey, Richard Curtin, included this official comment, “Consumer sentiment reversed in May due to tariffs as well as slowing gains in employment”
     

Read about today's economic data

Not so fast, Mr Powell.....Strong data today on US economy dashes hopes for rate cut from the Fed

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

University of Michigan Consumer Sentiment - 3 Years

consumer sentment

 

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