US Consumer Sentiment Falls to More Than Three-Year Low

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00:00Let's get over to Michael McKee right now, Bloomberg's international economics and policy

00:02correspondent. He's got the rundown. Mike? Well, to paraphrase Dan Quayle, you are not happy campers,

00:08happy campers you, unhappy campers you remain. 50.3 for the University of Michigan sentiment

00:13number. That is the lowest since June of 2022. The current conditions index falls to 52.3 from

00:2158.6. That is a record low for the current conditions index. Expectations, 49 from 50.3.

00:31So we're seeing some very disappointing numbers in terms of overall feel for the economy. In terms

00:36of the numbers that will matter to the Fed, the expectations for inflation over one year,

00:414.7 percent. That ticks up one basis point, basically, from 4.6 percent. And the 5 to 10

00:49year falls, however, 3.6 percent from 3.9 percent. So there may be some faith out there that

00:56the Federal Reserve will keep things in line, but not over the short term. So unhappy campers right

01:03now we have around the United States. Market reaction is limited. We are basically where we

01:09were before this data came in for the tens, twos, the S&P 500. I'm always amused is the wrong word,

01:15Mike, but I'm always curious about the inflation expectations. One year at 4.7 percent. It's not

01:22amusing at all. No, but it's extremely high and maybe out of touch with reality. I mean, 4.7 percent

01:28is extremely high. The rent. If you follow the University of Michigan numbers for years and years

01:33and years, you know that Americans have no idea what the inflation rate is. And so they're sort of

01:37guessing at this. And it's really kind of the movement up or down that you watch for rather than the

01:43specific point levels. The New York Fed does a consumer sentiment survey of inflation expectations,

01:51which is actually being released later today, usually on Mondays. And theirs is a little closer

01:57to the numbers. I don't know why that is in terms of who they talk to, but you can't take the 4.7

02:05percent necessarily seriously as a number. But the idea that it's that high is not good news.