US: Modest dip in consumer confidence may not yet fully reflect the deteriorating job market – Wells Fargo

Data released on Tuesday, showed an expected decline in US Consumer Confidence for the current month. Analysts at Wells Fargo point out economic indicators are starting to reflect the bunker mentality that mostly set in during the month of March. 

Key Quotes: 

“The fact that consumer confidence “only” fell 12.6 points is a better outcome than the drop of more than 20 points expected by the consensus. Last week, the University of Michigan’s counterpart sentiment survey posted the largest monthly drop since October 2008.”

“One explanation for the relatively modest decline is that perceptions of the strength of labor market are not in-sync with the most recent data.”

“In the accompanying note, Conference Board noted that this release came ahead of last week’s news of a record-shattering rise in jobless claims and that “further declines are sure to follow.”