Consumer sentiment - 10:00am

From the Wall Street Journal Consumer Sentiment Takes a Step Backward Consumer attitudes darkened in July, breaking a string of improved readings that had suggested households were regaining confidence in the economy. The Reuters/University of Michigan index of consumer sentiment, which was released Friday, sank to 66 from 70.8 in June, though it remained above the low of 55.3 recorded in November. Richard Curtin, the survey director, noted that most consumers "believe the economic free-fall is now over," but "see little reason to believe that the economic-stimulus package will improve their finances anytime soon." In July, the fewest consumers in the survey's 60-year history reported income gains, and respondents expected their incomes to rise just 0.2% on average in the next year. Buying plans for homes, autos and big-ticket household items declined as well. The drop in consumer sentiment echoes a decline in attitudes reported last month by the Conference Board, a New York business-research group. The index fell about five points to 49.3 in June after three consecutive gains. "The inescapable fact is that the U.S. consumer is faced with daunting fundamentals," said Joshua Shapiro, chief economist at New York-based MFR Inc.