Consumer Confidence Slumps Further as Recession Risks Persist

The Conference Board said Consumer Confidence declined in July for the third consecutive month in the US with the index at 95.7 (consensus 96.4) from a downwardly revised 98.4 (from 98.7) in June. Angst continued as prices soared and political discourse continued to hot consumer sentiment. Consumers were also more pessimistic about the short-term outlook with the Expectations Index dipped to 65.3 from 65.8 in June. The Conference Board US July Consumer Confidence The Conference Board’s Consumer Confidence Index dropped to … Continue reading “Consumer Confidence Slumps Further as Recession Risks Persist”

Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey

BofA Global Fund Manager Survey revealed the lowest equity allocation since Lehman Bros and the highest cash levels since 2001 as fund managers slashed their exposure to risk assets. These levels have not seen even during the global financial crisis. The markets in response on Tuesday in a sign of full capitulation amid a “dire” economic outlook rallied sharply by early afternoon the Dow at 31765.50 was +691.01 or +2.22%, Nasdaq 11695.85 +335.83 +2.96% and the SP 500 3931.38 +100.46 … Continue reading “Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey”

American Consumers Credit Slows Down in May Among Growing Recession Fears.

US consumer credit in May expanded by $22.35 billion, the smallest since January, after rising by a downwardly revised $36.76 billion in April, the Federal Reserve said on Friday. Analysts were way off on these numbers. Reuters polls had them expecting consumer credit to climb $31.90 billion after a previously reported $38.07 billion advance in April. With consumer sentiment at the lowest ever and inflation at 40 year high we are seeing consumer ‘retrained’ after two years of lockdown not … Continue reading “American Consumers Credit Slows Down in May Among Growing Recession Fears.”

Household Financial Stress Highest Since Outset of Pandemic US Economic Optimism Index Shows

The IBD/TIPP Economic Optimism Index in the US fell to the lowest since August 2011 38.1 in June of 2022 from 41.2 in the previous month. This follows the record low seen on Friday in the University of Michigan Index of Consumer Sentiment. Consumers report a stunning loss of confidence in June of Consumer Sentiment both reports show. Household financial stress hit the highest level since the outset of the pandemic in April 2020, as gas prices hit new records … Continue reading “Household Financial Stress Highest Since Outset of Pandemic US Economic Optimism Index Shows”

US Consumer Sentiment Crashes to Record Low on Rampant Inflation

Consumers reported a stunning loss of confidence in June the preliminary University of Michigan Index of Consumer Sentiment showed. The index in June dropped to 50.2 (consensus 59.0) from the final reading of 58.4 for May. The June reading compares to 85.5 in the same period a year ago and is the lowest reading ever on records dating back to 1978. Inflation pressures are seriously undermining consumer sentiment. The losses in confidence were widespread across income, age, and education subgroups … Continue reading “US Consumer Sentiment Crashes to Record Low on Rampant Inflation”