U.S. consumer confidence declines in July on tariff concernsStaff Writer | | Friday July 13, 2018 5:59PM ET
America Worries over the impact of recently introduced tariffs gained momentum
The University of Michigan's initial data indicated that the U.S. consumer confidence slipped in early July from May, but remained nearly equal to the average during the previous 12 months.
READ MOREThe consumer sentiment index dropped to 97.1 points in the first half of July, from the final reading of 98.2 in June, approaching an average of 97.7 in the prior 12 month, a survey report by Michigan University said on Friday. This higher than 93.4 seen in the same month a year earlier.
This represented the lowest level seen since January.
Despite the strength driven by “favorable job and income prospects,” “the darkening cloud on the horizon, however, is due to rising concerns about the potential negative impact of tariffs on the domestic economy,” survey chief economist Richard Curtin commented,
Worries over the impact of recently introduced tariffs gained momentum through May at 15%, June at 21%, and July at 38%, Curtin noted.
As for current economic conditions, the index dropped 2.2% to 113.9 points month-on-month in July, with a minor increase of 0.4% from the reading for the same month last year.
However, the expectation index almost stabilised at 86.4 points, inching up from 0.1 from the final estimate of previous month, but with a year-on-year increase of 7.3%.
“While consumers may not understand the intricacies of trade theory, they have substantial experience making decisions about the timing of discretionary purchases based on prospective trends in prices,” Curtin said. ■
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