Today's report on consumer confidence from the University of Michigan’s, showed the index sentiment at 100.0 in May, a bit softer than the preliminary read and the text accompanying the release offered cause for concern about tariffs, explained analysts at Wells Fargo.
Key Quotes:
“The headline print was actually a bit better than the number for April, but the accompanying text referenced a significant erosion in consumer confidence in the last two weeks of May and 35% of respondents “spontaneously mentioned” tariffs.”
“Consumer sentiment is now roughly back to where it had been in September before confidence began a trend decline amid the government shutdown and a wobbly stock market.”
“Despite the trade anxiety, the expectations component rose to 93.5 and while that is down from the initial estimate, it still marks the highest level in 15 years.”
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