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Today’s data showed a decline in the Consumer Sentiment index elaborated by the University of Michigan. Analysts at Wells Fargo, noted that the drop came from the Current Economic Conditions Index and added that trade worries weigh on sentiment.  

Key Quotes:  

“The preliminary report on July consumer sentiment showed consumers have become increasingly concerned about the possible impact that tariffs will have on the U.S. economy. Consumers’ assessment of current economic conditions fell 2.6 points to a still solid 113.9 in mid-July.”

“Concerns about tariffs have increased notably, rising from 15 percent in May to 21 percent in June and 38 percent today.”

“Inflation expectations fell in early July. Prices are expected to rise 2.9 percent over the next year, down from 3.0 percent last month. Expectations for the next 5-10 years fell 0.2 percentage points to 2.4 percent. The drop coincides with some easing in gasoline prices.”