UMich Sentiment Collapses To Record Low In June
In a stunning miss, University of Michigan Sentiment collapsed in preliminary June data, crashing from 58.4 to 50.2 (massively below the 58.1 expectations).
Source: Bloomberg
That is the lowest reading ever for UMich.
“Throughout the survey, consumers signaled strong concerns that inflation will continue to erode their incomes, and the factors they cited are unlikely to abate soon,” Joanne Hsu, director of the survey, said in a statement.
“While consumer spending has remained robust so far, the broad deterioration of sentiment may lead them to cut back on spending and thereby slow down economic growth,” Hsu said.
Don’t worry though, ‘they’ are on it…
*YELLEN: AMAZING HOW PESSIMISTIC HOUSEHOLDS ARE GIVEN JOB GAINS
Maybe you should give them more stimmies to cheer them up?
— zerohedge (@zerohedge) June 9, 2022
Consumers’ assessments of their personal financial situation worsened about 20%. Forty-six percent of consumers attributed their negative views to inflation, up from 38% in May; this share has only been exceeded once since 1981, during the Great Recession. Overall, gas prices weighed heavily on consumers, which was no surprise given the 65 cent increase in national gas prices from last month (AAA). Half of all consumers spontaneously mentioned gas during their interviews, compared with 30% in May and only 13% a year ago.
In addition, a majority of consumers spontaneously mentioned supply shortages for the ninth consecutive month.
Inflation expectations are soaring again with medium-term outlooks spiking to +3.3% – the highest since the 2008 peak…
Source: Bloomberg
Buying Conditions have crashed to record lows…
Source: Bloomberg
All income cohorts are getting more pessimistic…
Source: Bloomberg
Mission Accomplished?
Worst consumer confidence IN HISTORY pic.twitter.com/EW5UtBc1AY
— zerohedge (@zerohedge) June 10, 2022
