Economy

Google Ad

The preliminary July reading for the University of Michigan Index of Consumer Sentiment fell to 80.8 (consensus 86.3) from the final reading of 85.5 for June. This is the lowest reading since February as consumer sentiment declined as consumers' inflation expectations rose.

Pensive

University of Michigan's Consumer Sentiment Highlights For July (Prelim)

The preliminary July reading for the University of Michigan Index of Consumer Sentiment slipped to 80.8 (consensus 86.3) from the final reading of 85.5 for June.

  • The survey’s gauge of current economic conditions also fell to a reading of 84.5, the lowest since August 2020, from 88.6 in June.
  •  Cconsumer expectations slid to 78.4, the lowest since February, from 83.5.
  •  One-year inflation expectation shot to the highest level since August 2008 at 4.8%, up from 4.2%,
  •  Five-year inflation outlook ticked up to 2.9% from 2.8% in June.

This is the lowest reading since February and compares to the 99.3 reading seen in July 2020.

The key factor we get is from the report is the understanding that consumer sentiment declined as consumers' inflation expectations rose.

"Inflation has put added pressure on living standards, especially on lower and middle income households, and caused postponement of large discretionary purchases, especially among upper income households," adding “Consumers’ complaints about rising prices on homes, vehicles, and household durables has reached an all-time record,” Richard Curtin, the survey director, said in a statement.

University of Michigan: Consumer Sentiment reached a record high of 112.00 on January of 2000 and a record low of 51.70 in May of 1980. .

Source: University of Michigan 

From The TradersCommunity News Desk

Log in to comment
Discuss this article in the forums (0 replies).