Today's release of the Reuters/University of Michigan Survey of Consumers for July showed a notable decline in consumer sentiment with a reading of 66.5 remaining just 0.76% above the level seen last year and coming in at the lowest reading since August 2009.The Index of Consumer Expectations (a component of the Index of Leading Economic Indicators) also dropped notably to 60.6, the lowest level since March 2009, and the Current Economic Conditions Index declined to 75.5.
It's important to recognize that while consumer sentiment is still higher than the panic laden trough level seen in late 2008, the current sentiment level is far lower than any level seen during the 2001 tech recession and roughly equivalent to the worst seen during the early 1990s and second dip 1982 recessions.
