13 Feb 2015
US Feb Michigan sentiment erases January jump – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, reviews today’s US Michigan consumer sentiment release, viewing that the index is moving in the right direction in spite of erasing previous jump.
Key Quotes
“The February preliminary reading of University of Michigan consumer confidence has come in at 93.6 versus the final reading of 98.1 in January.”
“Markets had been looking for it to hold steady so it is a little disappointing. Nonetheless, it is still a strong reading that matches the figure recorded in December and is at a level historically consistent with decent consumer spending growth.”
“Looking at the breakdown the expectations component fell 3.5 points while the current conditions series dropped 6.2 points, but it is important to remember that the trend is still moving in the right directions.”
“With equity markets hitting new highs, mortgage rates falling, real incomes being boosted by falling energy prices and rising nominal wages at a time when employment continues to grow strongly, it is a pretty positive environment for the household sector right now.”
“There has been some concern about the softness in retail sales, but we still take the view that the economy has strong momentum and that the Fed will start to tighten monetary policy at the June FOMC meeting.”
Key Quotes
“The February preliminary reading of University of Michigan consumer confidence has come in at 93.6 versus the final reading of 98.1 in January.”
“Markets had been looking for it to hold steady so it is a little disappointing. Nonetheless, it is still a strong reading that matches the figure recorded in December and is at a level historically consistent with decent consumer spending growth.”
“Looking at the breakdown the expectations component fell 3.5 points while the current conditions series dropped 6.2 points, but it is important to remember that the trend is still moving in the right directions.”
“With equity markets hitting new highs, mortgage rates falling, real incomes being boosted by falling energy prices and rising nominal wages at a time when employment continues to grow strongly, it is a pretty positive environment for the household sector right now.”
“There has been some concern about the softness in retail sales, but we still take the view that the economy has strong momentum and that the Fed will start to tighten monetary policy at the June FOMC meeting.”