Friday, June 11, 2010

U.S. Consumer Sentiment Rises-06.11.2010

Retail sales may be going in the wrong direction but not consumer sentiment, which rose to 75.5 in the mid-June reading vs. 73.6 at month-end May. The nearly two-point gain is sizable and puts the index at its best level of the year. Gains were posted for both the expectations and current conditions components. Another plus is a definitive fading in inflation expectations, falling an unusually steep 5 tenths in the 12-month outlook to 2.7 percent. Today's report, because of its strength, hints at underlying improvement in the jobs market and should offset the sting from the May retail sales report.

Currently, the biggest dilemma against the rising consumers' confidence is the unemployment. In addition, according to the statistics the Euro-zone debt crisis doesn't affect consumers' sentiment too much. Though, it is still a great concern of the future development.

Liz T. Liu
Summer Analyst
Analyze Capital LLC

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