University of Michigan Consumer Sentiment Index Retreats in July to Near April Low Level

The University of Michigan on Friday 7/17 reported the results of their July Consumer Sentiment Index. The Index has suddenly reversed retreating from the promising June level of 78.1 to 73.2, “due to the widespread resurgence of the coronavirus.” The July index stands only +1.4 points above the April low. Richard Curtain, Surveys of Consumers chief economist said, following the steepest two-month decline on record, it is not surprising that consumers need some time to reassess the likely economic impact from the coronavirus on their personal finances and on the overall economy. Unfortunately, declines are more likely in the months ahead as the coronavirus spreads (…). While financial relief is clearly needed for the most vulnerable households, that relief will not stimulate the extent of renewed consumer spending necessary to restore employment and income to pre-crisis levels anytime soon.