UMich Sentiment Disappoints In April, Inflation Expectations Spike To 9-Year High

Despite stimmy checks and soaring stocks and vaccination successes and COVID case collapse, preliminary April data from UMich sentiment survey fell short of expectations.

While the headline print rose from 84.9 to 86.5 (pandemic highs), it fell far short of the 89.0 expectation. Additionally, while current conditions jumped from 93.0 to 97.2, the expectations (hope) index was flat at 79.7…

Source: Bloomberg

 

Buying conditions for houses and home appliances slipped as car-buying-hopes rose…

Source: Bloomberg

And finally, and perhaps most importantly, it would appear an inflationary sentiment is building among Americans…

Source: Bloomberg

But don’t worry, The Fed has ‘tools’, lots of ‘tools’…