Prelim UoM Consumer Sentiment 7/15/2022

This indicator measures the level of consumer confidence in economic activity. It is a key indicator because it can predict consumer spending, which constitutes a major part of the overall economic activity, and deduces from a survey of about 500 consumers, high readings indicate a positive consumer

University of Michigan consumer sentiment was revised down to a record low of 50.0 in June 2022, from an initial reading of 50.2. The sub-index for current economic conditions fell to an all-time low of 53.8 (versus 63.3 in May), and the expectations scale fell to 47.5. About 79% of consumers expected bad times next year for business conditions, the highest level since 2009. Inflation expectations for next year were 5.4%, not much changed from the initial reading or the previous four months. Meanwhile, five-year inflation expectations rose slightly to 3.1% from 3% the previous month but were down from their mid-month reading of 3.3%.

The expected reading for today is 49

A reading higher than expected positively affected the currency and a reading lower than expected negatively affected the currency

The statement will be issued at 5:00 pm Beirut time