Americans' Intentions To Buy A Car Collapse As High Rates Crush Home-Buying Plans

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by Tyler Durden
Friday, Jul 27, 2018 - 10:21

We hate to be the ones to steal the jam out of President Trump's donut but UMich consumer sentiment slumped to six-month lows in June, despite the surging economic growth, as trade anxiety weighed on current conditions.

The headline sentiment index eased to 97.9 (est. 97.1) from prior month’s 98.2 as current conditions gauge, which measures Americans’ perceptions of their finances, fell to 114.4 from 116.5 in June (but the expectations measure increased to 87.3 from June’s 86.3).

Nevertheless, Americans remain convinced that their incomes are going to rise...

“Consumers who had negative concerns about the tariffs voiced much more pessimistic economic outlook,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement.

“These negative economic expectations could quickly disappear if the trade issues with Europe are promptly settled and immediately followed by agreements with China, Canada, and Mexico.”

Additionally, it seems the poor are feeling worse and the rich slightly better...

Most worryingly, however, was the fact that vehicle buying plans posted a significant decline in July, falling to the lowest level in five years.

Consumers' assessment of vehicle prices was the weakest since early 1997 “partly due to fears of tariffs,” the report said...

And people complaining about high rates for home purchases highest since 2011...


Does any of that look like a healthy US economy?