The University of Michigan surveyed consumers about their assessment of the economy and their outlook for the future between 24 April and 15 May, so the new tariffs on Chinese goods introduced on 5 May should have had a material influence on the survey. But instead of declining, the overall index jumped to a 15-year high of 102.4 points! And as if that wasn’t enough, the assessment of the current situation remained virtually unchanged while the expectations component was single-handedly responsible for the jump. One may say that given the low unemployment rate and the solid wage growth, consumers should be upbeat, but expectations that are as optimistic as during the hayday of the real estate boom before the financial crisis seems ridiculous.
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(Almost) Daily Market News Update
- Published:
20 May 2019 -
Author:
Joachim Klement -
Pages:
6
The University of Michigan surveyed consumers about their assessment of the economy and their outlook for the future between 24 April and 15 May, so the new tariffs on Chinese goods introduced on 5 May should have had a material influence on the survey. But instead of declining, the overall index jumped to a 15-year high of 102.4 points! And as if that wasn’t enough, the assessment of the current situation remained virtually unchanged while the expectations component was single-handedly responsible for the jump. One may say that given the low unemployment rate and the solid wage growth, consumers should be upbeat, but expectations that are as optimistic as during the hayday of the real estate boom before the financial crisis seems ridiculous.