Michigan Consumer Sentiment Drops To 66.4, Exceeding Analyst Expectations

On July 26, 2024, the University of Michigan released Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment declined from 68.2 in June to 66.4 in July, compared to analyst consensus of 66.

The University of Michigan commented: “Sentiment has lifted 33% above the June 2022 historic low, but it remains guarded as high prices continue to drag down attitudes, particularly for those with lower incomes.”

Current Economic Conditions decreased from 65.9 in June to 62.7 in July, while Index of Consumer Expectations declined from 69.6 to 68.8.

Year-ahead inflation expectations declined to 2.9%, within the range seen in the two years prior to the pandemic. Long-run inflation expectations were unchanged at 3.0%.

U.S. Dollar Index  settled near the 104.25 level after the release of Michigan Consumer Sentiment report. Treasury yields are moving lower, which is bearish for the American currency.

Gold  tested session highs near the $2390 level as traders focused on U.S. dollar’s pullback and falling Treasury yields. It remains to be seen whether Consumer Sentiment data will have a material impact on gold markets, which have been volatile in recent trading sessions.

SP500  settled near the 5450 level as traders reacted to the better-than-expected Consumer Sentiment data. From a big picture point of view, traders are buying stocks after the strong pullback from historic highs.

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