US: Consumer confidence lower than it was in April and May – Wells Fargo
Economic data released on Tuesday showed a positive report with New Home Sales and a negative with Consumer Confidence. Analysts at Wells Fargo argue the initial relief that followed the lifting of lockdowns has been replaced by a resigned acceptance of a new way of life, but recent progress at containment may signal a turn.
Key Quotes:
“Consumer Confidence is lower now than it was in April and May at the height of the lockdowns. Still confidence is not as battered as it typically might be during a recession.”
“What is particularly disconcerting is that the expectations component at 85.2 is now at a fresh period low.”
“While there is not a long enough time series to make a bullet-proof case, it appears that confidence lags the progress with the virus, at least to some extent. If recent progress at containing the virus holds, there is a reasonable case for confidence to snap back.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
