Consumer Sentiment in U.S. Retreats Concerns About Economy

[Purveyor]

Source: Bloomberg

by Erin Roman
July 17, 2015 — 10:00 AM EDT

Consumer confidence declined in July on concerns global risks will dim prospects for the U.S. economy.

The University of Michigan’s preliminary index of sentiment dropped to 93.3 during the month from 96.1 in June, figures showed Friday. The median forecast in a Bloomberg News survey of economists called for a reading of 96. Consumers remained upbeat about employment and wages.

“When asked to explain how their finances had changed, more households mentioned income gains,” with the share increasing to 38 percent this month from 32 percent in June, Richard Curtin, director of the Michigan Survey of Consumers, said in a statement. “Slowly improving finances were anticipated for the year ahead.”

The Greek financial crisis and a slowdown in China were mentioned by respondents in the survey and help explain why Americans were less upbeat about the domestic economy. Even with the decline in sentiment, July marks the eighth straight month the Michigan gauge has been above 90, the longest stretch since a 17-month period ended in early 2005.

Read more: http://www.bloomberg.com/news/articles/2015-07-17/consumer-sentiment-in-u-s-retreated-in-july-on-economy-concerns

[forest444]

1. Still going strong though.

This index is typically around 60 during recessions. It reached 111 at the height of the Clinton boom in 1999.