Consumer Sentiment in U.S. Retreats Concerns About Economy
Bloomberg - Jul 17, 2015
Consumer confidence declined in July on concerns global risks will dim prospects for the U.S. economy.
The University of Michigan’s preliminary index of sentiment dropped to 93.3 during the month from 96.1 in June, figures showed Friday. The median forecast in a Bloomberg News survey of economists called for a reading of 96. Consumers remained upbeat about employment and wages.
“When asked to explain how their finances had changed, more households mentioned income gains,†with the share increasing to 38 percent this month from 32 percent in June, Richard Curtin, director of the Michigan Survey of Consumers, said in a statement. “Slowly improving finances were anticipated for the year ahead.â€
The Greek financial crisis and a slowdown in China were mentioned by respondents in the survey and help explain why Americans were less upbeat about the domestic economy. Even with the decline in sentiment, July marks the eighth straight month the Michigan gauge has been above 90, the longest stretch since a 17-month period ended in early 2005.
The decline in sentiment this month was due to less optimism among households with incomes under $75,000.
The survey’s gauge of expectations six months from now fell to 85.2 from 87.8 in June. The gauge of current conditions decreased to 106 from 108.9 last month.