Courtesy of Mish.
Yesterday, we were told Fearful Investors Lost Faith in Trump.
Today, Bloomberg tells us Surge in Expectations Drives Gain in U.S. Consumer Sentiment.
Consumer sentiment climbed in August to a seven-month high as a measure of the outlook for the U.S. economy and personal finances registered the largest one-month advance since the end of 2011, according to University of Michigan survey data released Friday.
Consumer sentiment has recovered following a two-month slide as President Donald Trump’s legislative agenda ran into several roadblocks.
Highlights
- Sentiment index rose to 97.6 (est. 94) from 93.4 in July
- Expectations measure jumped to 89 from 80.5 the prior month
- 8.5 point increase in consumer expectations biggest since December 2011
- Current conditions gauge, which measures Americans’ perceptions of their finances, fell to 111 from 113.4
Key Statement
“The precautionary mood of consumers had required price discounts and low interest rates to offset their economic uncertainties, now consumers are more likely to base their spending decisions on a renewed confidence in their jobs and incomes,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement.
OK Let’s Ask Consumers
Instead of asking consumers how they feel, why not ask them what they expect to do? Oh, wait, the Fed just did that.
Consumer Spending Expectations Down Again
On August 14, I wrote Consumer Spending Expectations Down Again: Dear Fed, Why Don’t You Believe Your Own Survey?
