Preliminary UoM confidence for July was 72, 1.5 pts below estimates, down from 73.2 in June and is now at a 7 month low. The components were mixed as Current Conditions rose 1.7 pts to 83.2 but the Outlook fell 3 pts to 64.8. A positive within the report was the one yr inflation expectations figure which fell to 2.8% from 3.1% and to the slowest since Oct ’10 as gasoline prices are .20 on avg below where they were at the beginning of June. Bottom line, although soft, the market didn’t care as they shouldn’t as confidence is just a snapshot and says nothing about future consumer behavior.
