“Buying conditions for cars, houses, and large durable goods fell to multi-decade lows in June, according to the University of Michigan survey, meaning the vast majority of respondents believe it’s a bad time to buy the above“.
Consumer sentiment about the economy is also at a 40-year low. Interestingly, Oaktree make the point that the magnitude of decline could be skewed by political bias.
“For context, in June 1980, the difference between sentiment figures for self-identified Democrats and Republicans was 4.1 points. The gap is currently 31.5 points. This is another reminder of how people can interpret the same fundamentals very differently.“
