In an odd reversal of recent trends, the future expectations sub-index of the UMich consumer confidence survey fell (lowest in 3 months) as the current rose notably (to its highest in 6 years). Is hope fading? Perhaps it is the spike in gas prices? Or the spike in mortgage rates? [3] Critically though, this is the first miss of expectations since December 2012 as inflation expectations also surged to the highs of the year.
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as a reminder, we have seen this pattern before [5]...
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Charts: Bloomberg