Economics
U.S. Consumer Sentiment Posts Surprise Drop After Surge in Virus
- Michigan gauge drops to 73.2, weaker than all forecasts
- Five-year economic expectations fall to lowest since 2014
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U.S. consumer sentiment turned decidedly more pessimistic in July, defying forecasts for further improvement after the resurgent coronavirus nearly wiped out emerging confidence around reopenings.
The University of Michigan’s preliminary sentiment index decreased 4.9 points to 73.2, according to data Friday, reversing most of the prior month’s 5.8-point gain. The median projection in a Bloomberg survey of economists called for a slight increase to 79, with estimates ranging from 75 to 85.