US Consumer Sentiment: Rising off a Very low base – Wells Fargo

The Consumer Sentiment Index (University of Michigan) rose in June above expectations according to preliminary data. Analysts at Wells Fargo point out consumer sentiment has been impacted by the pandemic and remains low but June marks the second straight monthly increase and it was better than what had been expected. 

Key Quotes: 

“Like a number of other measures, the University of Michigan’s measure of consumer sentiment hit a wall in March and April, but June marks the second straight monthly increase for this barometer of future spending. The 78.9 reading is about where we were in the early-to-middle part of the prior cycle (2013).”

“Consumers’ perception of their own household finances has been dented by the crisis, but this is improving as well. The June reading of 112.0 is up slightly over the 3-month moving average of 108.3, perhaps reflect the swift recovery in the stock market.”

“This is consistent with what we saw in yesterday’s release of household net worth figures from the Fed’s flow of funds report.”