- REUTERS/Stefan Wermuth
Consumer confidence disappointed.
The headline consumer sentiment index came in at 89.0, according to the University of Michigan’s latest survey of consumers.
This was below economists’ expectations of a reading of 90.0, according to the Bloomberg consensus.
Moreover, this was a drop from the previous month’s reading of 91.0.
The report notes that all of the decline came from the Expectations component, which dropped by 4.8% in the last month, by 12.6% from a year ago, and by 14.7% from its peak back in January 2015.
“The decline is all the more remarkable given that consumers’ assessments of current economic conditions, including their personal finance, have remained largely unchanged at very positive levels during the past year,” the report noted.
“This divergence may reflect the strength of the consumer relative to the business sectors, and may have been exacerbated by growing uncertainty about the economic policies advocated by various presidential candidates,” it continued.
Still, although the decline is “troublesome,” the report’s authors also noted that it’s still far off from signaling a recession.