US consumer confidence likely down – Wells Fargo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Research Team at Wells Fargo, notes that the US consumer has plateaued recently, corresponding with more moderate growth amidst headwinds from the energy sector, a stronger dollar and financial market volatility.

    Key Quotes

    “January saw an increase in consumer confidence, as improving business and employment conditions outweighed the stock market sell-off. Further volatility in the S&P 500 Index since last month’s January 14th survey cutoff and a moderation in the pace of improvement in the labor market should weigh on consumer confidence in February’s release.

    That said, we do not expect a collapse in consumer confidence. The Conference Board’s measure of consumer confidence is more sensitive to improvement in the labor market than financial market developments, which may offset weakness stemming from equity market volatility. On balance, however, moderation in labor market improvement and growth fears should pull consumer confidence down slightly.”
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