University of Michigan Sentiment Survey Reaches a 26 Year Low
25 April 2008
The University of Michigan Sentiment, a measure of US consumer confidence, came in at 26 year low today, reflecting the continuing turmoil of the US economy. The index came in at 62.6, well below the market expectation of 63.2. Many analysts agree that consumers are starting to feel the effects from a tightening labor market coupled with higher consumer prices. The low reading comes just 1 week before the US Federal Open Market Committee convenes to adjust monetary policy, and provides the market with more ammunition to support further policy easing.