Lights out for Consumer Sentiment amid reboot of economy
|In more than 40 years, never before have the lights gone out so quickly for the University of Michigan’s Survey of Consumer Sentiment. The drop in current condition was almost double the prior record set in October 2008.
Roughly Twice as Bad as October 2008
- The decline in the University of Michigan’s Survey of Consumer Sentiment was the largest one-month plunge on record. However, the preliminary print of 71.0 for April is still 15.7 points higher than the November 2008 low.
- The bottom fell out beneath the current conditions index, which shed 31.3 points, nearly doubling the prior record drop of 16.6 points set in October 2008
But Hope is Not Lost
- To the extent that any silver linings can be found in today’s report, the expectations index only fell 9.7 points. That is a considerable decline, but not nearly as bad as the record 16.5-point drop in December of 1980. Had it not been for this faith in tomorrow and hope for what is on the other side of this crisis, the drop in confidence would have been worse.
- We expect a record contraction in consumer spending in Q2
Download The Full Economic Indicators
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.