Consumer sentiment in January plunges to lowest degree since Trump elected

Elijah Nouvelage/Bloomberg

Travelers stand in line to enter a Transportation Security Administration (TSA) check-point at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, U.S., on Monday, Jan. 14, 2019.

The numbers: The University of Michigan mentioned its consumer sentiment index in January skidded to a studying of 90.7 in January from 98.3, which is the worst studying since October 2016.

Economists polled by MarketWatch forecast a 97.5 studying.

What occurred: The decline was significantly sharp for the expectations index, which fell to 78.Three from 87, whereas current financial circumstances additionally fell, to 110 from 116.1.

What they’re saying: “The loss was resulting from a number of points including the partial government shutdown, the impact of tariffs, instabilities in monetary markets, the global slowdown, and the shortage of readability about financial insurance policies,” mentioned Richard Curtin, chief economist for the survey. “While the January falloff in optimism is definitely according to a slowdown within the tempo of progress, it doesn’t but point out the beginning of a sustained downturn in financial exercise.”

Market response: U.S. shares moved barely off their highs of the day following the information, however the Dow Jones Industrial Average

DJIA, +0.66%

  was nonetheless up over 100 factors.

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