US: Trend improvement in consumer sentiment has stalled - Wells Fargo

The University of Michigan’s measure of consumer sentiment was revised up slightly from the initial estimate for August, but that does not change the fact that sentiment has slipped to its lowest levels since January, explained analysts at Wells Fargo. 

Key Quotes: 

“The 96.2 number for consumer sentiment was an upward revision from the initially reported 95.3. While still elevated relative to the rest of the current cycle, today’s print is further evidence that the trend improvement in consumer sentiment has stalled in 2018. In the assessment of consumers, their current financial situation (at 133) is better than their expected situation (at 131), a somewhat new development.”

“Inflation may be a growing concern for consumers, but we saw evidence earlier this week that real disposable income was also up 2.9 percent over the past year and a rising share of consumers expect to see higher income over the coming year.”