Inflation Expectations Hit 13 Year High As Democrats Drive Sentiment Slump In July

The final July UMich sentiment survey was not expected to improve at all over the disappointing preliminary print, which showed a drop in confidence across the board (even among Democrats), and they were basically correct with a very small improvement over the mid-month reading but all still down on the full month…

Source: Bloomberg

Buying Conditions worsened within the month with homebuying and vehicles attitudes dropping to new cycle lows…

Source: Bloomberg

Interestingly it appears that Democrats are losing faith in the economic future of America…

Source: Bloomberg

Finally, inflation expectations dropped very modestly from mid-month readings (1Y from 4.8% to 4.7% and 5-10Y from 2.9% to 2.8%), but the 1Y expectation rose on the month after dipping to 4.2% in June (the highest since 2008)…

Source: Bloomberg