Today, the University of Michigan’s monthly consumer confidence survey revealed a sharp drop in sentiment since last month.
The headline index fell to 71.8 from 77.6 last month. Economists had predicted it would rise to 78.0.
The drop was led by the economic outlook sub-index, which says that consumers are a lot more pessimistic about what’s coming in the future than how economic conditions are right now.
The University of Michigan’s explanation of the drop in the press release accompanying the data was rather striking:
“Never before in the long history of the surveys have so many consumers spontaneously mentioned that the disarray in federal economic policy was the main problem facing the economy.”
Michigan’s survey dates back to 1978.
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