Consumer Sentiment Takes A Dive, Friday the 13th Lives On
Is it bad luck to release a sentiment index reading on Friday the 13th? Apparently so. The Reuters/University of Michigan preliminary sentiment index for July came in at a very disappointing 72.0. That is the lowest reading for all of 2012.…
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What we find interesting is that this was supposed to represent an uptick from June’s 73.2 reading. With all of the corporate earnings warnings and negative news out of Europe we are stumped that the consensus was looking for a higher reading than in June. A conspiracy theorist might deduct that even the economists being surveyed are a bunch of bozos. Think about it… How could sentiment have been higher?
This report is based on questions and answers from only 500 households each month on their financial conditions and attitudes about the economy, and the report will be adjusted late in July as well. The aim of the report is obvious as consumer sentiment is supposed to be directly related to the strength of consumer spending.
One more bit of negative news flow, with more likely coming down the pipe.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
