US Consumer Confidence: Rebound in trouble as confidence fades – Wells Fargo

Matías Salord FXStreet

After a run of strong economic data in recent weeks, the wilting in consumer sentiment in July may be the start of a softening trend amid a resurgence in COVID-19 cases, explained analysts at Wells Fargo following the University of Michigan Consumer Confidence report released on Friday.

Key Quotes:

“The University of Michigan’s index of consumer sentiment slumped to 73.2, a level that is less than two points above its April trough, when consumers became fully awake to COVID-19.”

“The measure for current financial situation edged slightly higher, although with the expiration of the additional $600 weekly jobless benefit approaching at the end of this month, expectations about future finances fell 11 points to 121.”

“We do not expect to see a material increase in consumer sentiment until it is widely viewed that the virus is under control.”

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.

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