U.S. Consumer Confidence at the lowest level since October

Friday, May 15 2015

The University of Michigan preliminary index of sentiment dropped to 88.6, the lowest since October, from 95.9 in April. Analysts were predicting incline to 96.5. The 7.3 point decrease was the largest since December 2012. “The decline was widespread among all age and income subgroups as well as across all regions of the country,” Richard Curtin, director of the Michigan Survey of Consumers, said in a statement. “To be sure, the recent decline in consumer confidence does not indicate an incipient downturn in consumption and residential investment. Rather the data indicate a reluctant acceptance on the part of consumers that economic growth will remain near the same lackluster pace recorded during the past several years.”

Earlier today, industrial production figures were released showing 0.3% decrease in April for its fifth consecutive monthly loss, missing forecasts on 0.1% increase. Manufacturing output was unchanged in April after recording an upwardly revised gain of 0.3% in March. In April, the index for mining moved down 0.8%, its fourth consecutive monthly decrease; a sharp fall in oil and gas well drilling has more than accounted for the overall decline in mining this year. The output of utilities fell 1.3% in April. At 105.2% of its 2007 average, total industrial production in April was 1.9% above its year-earlier level.

After the data USD fell against its major rivals. Euro is currently being traded near 1.14 handle, Aussie is slightly above 0.30 level, while Sterling is at 1.5770 area.

Last modified on Friday, 15 May 2015

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