US consumer confidence had started 2019 at well above average levels in a longer-term context, although it was markedly lower than the more buoyant readings which typified most of 2018. After rebounding from the falls of January and February, US households have pretty much maintained a historically-high level of confidence.
The latest survey conducted by the University of Michigan indicates the average confidence level of US households has remained at an elevated level despite a slip. The University’s preliminary estimate of its Index of Consumer Sentiment dropped back from May’s revised figure of 100.0 to 97.9 in June, a little more than the market estimate of 97.0.
The University’s chief economist (Surveys of Consumers), Richard Curtin said tariffs and jobs were uppermost in the minds of US consumers. “In early June, consumer sentiment reversed the May gain due to tariffs as well as slowing gains in employment. Some of the decline was due to expected tariffs on Mexican imports, which may be reversed in late June, but most of the concern was with the 25% tariffs on nearly half of all Chinese imports.”