Last Update: 17-Jul-15 10:20 ET
- The University of Michigan's Consumer Sentiment Index declined to 93.3 in the preliminary July reading from 96.1 in June. The Briefing.com Consensus expected the index to increase to 96.5.
- Consumer sentiment typically follows trends in gasoline costs, stock market movements, employment, and media reports.
- In this case, dire economic reports about Greece and the eurozone and some volatility in the equity market likely offset recent improvements in gasoline prices and employment conditions.
- The Current Conditions Index dropped to 106.0 in July from 108.9 in June. The Expectations Index declined to 85.2 from 87.8.
- The decline in sentiment is unlikely to have much of an impact on consumption trends. Consumption relies on income growth. As long as income continues to grow, consumption gains should follow regardless of how sentiment performs.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.