US: Slight downside risk for consumer sentiment – Nomura

The preliminary reading of consumer sentiment from the University of Michigan survey indicated an uptick in August, mainly driven by self-identified Republicans, but there is a slight downside risk for the August final reading as much of the preliminary survey was conducted before controversies regarding President Trump’s remarks on the events in Charlottesville, VA, according to analysts at Nomura.

Key Quotes

“The final report will likelyfully capture the impact of these controversies on consumer sentiment. However, healthy consumer fundamentals should maintain elevated readings for consumer sentiment. Meanwhile, inflation expectations (2.6% over next year and 2.5% over the next five years) are likely to remain within a steady range.”