US: Consumer sentiment in focus – Nomura

Analysts at Nomura explain that while remaining elevated, US consumer sentiment pulled back in the preliminary April reading of the University of Michigan’s consumer survey.

Key Quotes

“The headline sentiment index decreased to 97.8, from a previous reading of 101.4. The survey noted that the decline was “mainly due to concerns about the potential impact of Trump's trade policies on the domestic economy.” Those that spontaneously mentioned trade policy as a concern showed a collective 64.2 for their expectations index. This pales in comparison with the 93.9 reading for respondents not mentioning trade policy. Despite the decline, consumer optimism remains elevated as the economy continues to add jobs at a healthy clip and income growth remains firm.”

“Inflation expectations in the preliminary reading ticked down 0.1pp at the 1-year and 510-year horizons to 2.7% and 2.4%, respectively, remaining within a steady range.”