Last week’s University of Michigan Consumer Sentiment index showed that people are still feeling pretty good about the economy. It came in at 94.3, just a tick below the 94.7 we saw in May. The confidence index has been in a range similar to that of the last expansion’s peak for about two years now.
Despite worries over job creation and rising gas
prices, the current conditions index was especially strong, shooting to a new post-recession high. The current conditions index is now higher than 90 percent of the prior readings for this survey dating back to 1978.
Maybe that's because expectations for inflation over the five years starting five years from today fell to their lowest level on record, at 2.3 percent. That’s a continuation of a slide that’s been in place since 2014.