US: Downside risk to University of Michigan sentiment - HSBC
|In September 2005, shortly after Hurricane Katrina made landfall in late August, the Michigan consumer sentiment index fell by around 12 points, points out the analysis team at HSBC.
Key Quotes
“The decline in sentiment was partly related to the disaster itself, but also reflected a steep rise in gasoline prices as crude oil production in the Gulf Coast area was heavily disrupted.”
“There could be some downside risk to this month's Michigan sentiment index in the aftermath of Hurricane Harvey. We expect a decline of around 4 points from 96.8 in August to 92.7 in September. Average national gasoline prices have increased by about 30 cents per gallon over the past two weeks, reflecting a sizeable disruption to refining activity. This compares with a rise of around 70 cents over the weeks leading up to and just after Hurricane Katrina.”
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.