US: Consumer confidence remains elevated – Wells Fargo

Largely ignoring other news, consumers are still focused on job and income growth, both of which remain favorable, explained Wells Fargo economists. They noted onflation expectations remain muted, supportive of more rate cuts from the Federal Reserve next week. 

Key Quotes: 

“Essentially matching the YTD average, consumer sentiment–as measured by the University of Michigan–remains elevated at a level of 95.5. While recent news headlines highlight risks to the outlook, consumers remain largely focused on their income and job prospects.”

“Consumer sentiment has fallen from its peak, but is still at levels consistent with solid consumption growth.”

“Slowing GDP growth and muted inflation pressures give the Fed the cover to cut interest rates–which we expect it will at next week’s FOMC meeting.”