US Consumer Confidence: Trump’s victory optimism evaporated - ING
|US consumer confidence measured by the University of Michigan dropped to 94.5. James Knightley, Senior Economist at ING, points out that all optimism generated by Trump’s victory has been reversed.
Key Quotes:
“A lack of action of fiscal and tax policy and a sense of disappointment on the economy seems to be prompting weaker sentiment readings”.
“The preliminary June reading of the University of Michigan consumer confidence index has come in at 94.5 versus 97.1 in May. It was also weaker than the 97.0 consensus and is the softest reading since last October. The details show the weakness was spread fairly evenly between the current conditions index and the future expectations series.”
“All optimism generated by Trump’s Presidential victory has been reversed now, which presumably relates to the lack of action on fiscal stimulus, tax reform and healthcare changes. There was also a steep fall in business expectations for next year (again back to Trump election levels) and also business conditions over the last few months.”
“ Weak wage growth presumably doesn't help. Nonetheless, most other spending related questions saw similar responses seen in recent months (be it buying a house, car or other items).”
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