Michigan Consumer Sentiment Drops To 66.0, Missing Analyst Expectations

On July 12, 2024, the University of Michigan released Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment declined from 68.2 in June to 66.0 in July, compared to analyst consensus of 68.5.

At current levels, Consumer Sentiment is more than 30% above the lows reached back in June 2022.

Current Economic Conditions decreased from 65.9 in June to 64.1 in July, while Index of Consumer Expectations declined from 69.6 to 67.2.

Year-ahead inflation expectations declined to 2.9%. Long-run inflation expectations decreased from 3.0% to 2.9%. Inflation expectations remain elevated compared to pre-pandemic levels.

The University of Michigan commented: “With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy, though there is little evidence that the first presidential debate altered their economic views.”

U.S. Dollar Index tested new lows after the release of the weaker-than-expected Michigan Consumer Sentiment report. Currently, U.S. Dollar Index is trying to settle below the 104.10 level.

Gold continued to rebound from session lows and made an attempt to settle above the $2410 level. U.S. dollar’s pullback provides additional support to gold markets.

SP500 tested session highs above the 5620 level. Traders use the recent pullback as an opportunity to increase their long positions. Treasury yields are moving lower, which is bullish for equity markets.

For a look at all of today’s economic events, check out our economic calendar.