Monday, July 19, 2010

University of Michigan Consumer Sentiment Index Plunges By 9.5 Points

In July, the University of Michigan Consumer Sentiment Index dropped 9.5 points to 66.5. After remaining relatively steady since last winter, the index in now down to its lowest level since August 2009. The large decline was about evenly due to the current conditions component and the future expectations component. The prior fell 10.1 points while the later fell 9.2 points. It is likely that the stock market declines of late June and early July had a significant impact on confidence. In addition, the laying off of census workers, which brought stories of a weak job market into center stage, likely reduced confidence in the job environment.

Inflationary expectations rose modestly over the month. The one-year outlook rose to 2.9% from 2.8% in June. The five-year outlook also rose to 2.9% from 2.8%.

10.07.16 (Source: University of Michigan)

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