Consumer Sentiment fell 2.0 points in June to 95.1, according to the University of Michigan Consumer Sentiment Index.
The Current Economic Conditions Index rose 0.8 point to 112.5, while the Consumer Expectations Index decreased 3.8 points to 83.9.
“Although consumer confidence slipped to its lowest level since Trump was elected, the overall level still remains quite favorable. The average level of the Sentiment Index during the first half of 2017 was 96.8, the best half-year average since the second half of 2000, and the partisan gap between Democrats and Republicans stood at 39 Index-points in June, nearly identical to the 38 point gap in February. The partisan divide still meant that June’s Sentiment Index of 95.1 was nearly equal to both the average (95.7) between the optimism of Republicans and the pessimism of Democrats and the value for Independents (94.6). Surprisingly, the optimism among Republicans and Independents has largely resisted declines in the past several months despite the decreased likelihood that Trump’s agenda will be passed in 2017,” said Richard Curtin, chief economist of UM Surveys of Consumers. “The most important policies to consumers are those that directly or indirectly affect their jobs, incomes, or their financial security. Fortunately, increasing uncertainty about future prospects for the economy has thus far been offset by the resurgent strength in the personal financial situation of consumers. The combination of continuing improvements in personal finances and increasing concerns about the economic outlook is typical around cyclical peaks. Nonetheless, the data provide no indication of an imminent downturn nor do the data provide any indication of a resurgent boom in spending. Even with a much improved 2nd quarter, personal consumption spending is expected to advance during 2017 by about 2.3%.”
Read the University of Michigan Surveys of Consumers release.