US: University of Michigan confidence suggests economy is performing well - ING

James Knightley, Research Analyst at ING, notes that the US University of Michigan consumer sentiment has come in at 94.3 in June, slightly down on the 94.7 reading in May, but a little above the 94.0 consensus.

Key Quotes 

“This gives us some confidence in the view that last week's payrolls disappointment is not the start of a new trend seeing as confidence remains close to cycle highs, suggesting no distress about the state of the jobs market. Moreover, with the consumer expectations component looking healthy at 83.2, it suggests consumer spending should perform well in the coming months.           

With job openings at cycle highs, businesses are still recruiting so we would expect a decent rebound in the June jobs report. However, the Fed will probably want to see at least two decent jobs figures before pulling the trigger on higher rates. This means we continue to favour the September FOMC meeting for the next rate rise.”