Below is a chart and brief excerpt from today's Early Look written by Hedgeye Director of Research Daryl Jones.
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The headline number in yesterday’s U.S. Consumer Confidence report was 117 for July, which was a big acceleration from 110.1 in June and a two-year high. This report remains at odds with much of the underlying data we look at on the consumer related to credit card debt, interest expenses, the cost of buying houses and disposable personal income. The chart below shows this graphically via the credit card data (a chart you’ve seen before from us). Additionally, while a confident and employed consumer is good for America, it probably isn’t ideal for central bankers trying to impede the demand side of the inflation equation. |
