Rich Americans freaked out right after Brexit

The University of Michigan’s consumer sentiment unexpectedly slipped to 89.5 in July, a preliminary report showed.

Economists had forecast that the index of consumer sentiment was unchanged from the final June reading of 93.5, according to Bloomberg.

This was the first consumer-confidence report since Britain’s vote to leave the European Union.

“Prior to the Brexit vote, virtually no consumer thought the issue would have the slightest impact on the US economy,” Richard Curtin, the Surveys of Consumers chief economist, said in the release.

“Following the Brexit vote, it was mentioned by record numbers of consumers, especially high-income consumers.”

Many people in that income bracket were concerned because of the personal-wealth losses they incurred in the market sell-off after the referendum.

“With the S&P having quickly recovered its post-referendum losses and hit new highs, we expect a clear rebound in sentiment next month,” Pantheon Macroeconomics’ Ian Shepherdson wrote in a note. “The July drop is very probably nothing to worry about.”

Inflation expectations for next year increased to 2.8% from 2.6%; they fell to a multiyear low in May. Expectations for the next five years held steady at 2.6%.

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