Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Consumer Sentiment Plunges


The University of Michigan reports that consumer sentiment fell to 86.5 in early July from 92.4 in June. The consensus had expected a flat number.

The level of sentiment is the lowest since last November, and comes in sharp contrast to the strong retail sales report. The decline was concentrated in expectations, which plunged to 78.5 from 87.9. The current conditions report dropped only marginally, to 99.0 from 99.5.

The slump suggests that consumers could back away from spending in the summer, and may require revising downward our consumer spending forecast.

June Retail Sales Jump 1.1%

Retail sales jumped 1.1% in June, more than the 0.7% expected by the consensus of economists. Excluding auto dealers, however, sales were up 0.4%, in line with expectations.

The jump just offsets the 1.1% May drop, bringing sales back to their April level. The data confirms that the May drop was mostly bad weather, not bad vibes. Consumers still seem ready to spend beyond their means, and we expect the economy to reaccelerate. Still, the Fed is not expected to move interest rates this year.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus