The Reuters/University of Michigan Sentiment report for a revised end of July figure came in at 72.3. Dow Jones was calling for a report of 72.0, and Bloomberg also had the consensus pegged at 72.0. Bloomberg showed a range of estimates of 71.0 to 75.0.
The preliminary report from two weeks ago had the figure at 72.0, so the revision is only a slight uptick. Still, the market is looking for and hoping for “good news” of any sort right now. The current conditions component was what is adding strength, but the expectations component was the drag.
U.S. consumers have been holding up the economy so far, as seen in the GDP report this morning, but it remains a very weak growth. The drop off of business sentiment has been higher in recent weeks, compared to just a couple of months ago before the European meltdown threatened the global growth story.
Today’s news is unlikely to move the markets, since it is a revision and the revision is close enough to the preliminary report. Friday is a trading day that remains dominated by the GDP news earlier this morning.
JON C. OGG