UMich’s preliminary data for April was a bloody massacre, and the final data (albeit slightly better than flash prints) gave little hope for any change in the near future …
The University of Michigan’s final mood index for April fell 17.3 points to 71.8 a month earlier after a preliminary reading of 71, according to data on Friday. The measure, although the lowest since 2011, was higher than the average forecast of 68 in a Bloomberg economist survey.
Current condition sensor drops to 74.3better than preliminary reading 72.4 so far measure of expectations fell to 70.1.
Purchase conditions have collapsed everywhere with intentions to purchase housing at the lowest level since 1983 (and the conditions for buying large durable goods in the family are the worst in history …
While all income levels have been affected, it seems that the richest have suffered the biggest drop, but the poorest are the worst levels since 2013 …
The closure of secondary businesses in most US states has led to an unprecedented 26.5 million jobless claims in the past five weeks. With thousands of stores closed, as governments expect some sort of alleviation of the health crisis, consumer spending has dropped significantly.
“In the coming weeks, when several states reopen their economies, consumers will get more information on how reopening can lead to a resurgence of coronavirus infections.” said Richard Curtin, director of the survey, in a statement.
“Consumer response to extenuating restrictions will be critical.”
According to the university, the percentage of respondents reporting improved finances fell to 38% this month, which is a sharp turn after reaching a record high of 58% in February. A worsening economy was expected by 89% of all consumers, only below a peak of 96% in February 2009 during the last recession.