Dolan: Michigan Sentiment Shows 'All Is Not Well' With U.S. Consumers

According to the University of Michigan, the Index of Consumer Sentiment hit 89.7 in April, down from 91 in March, and well below the expected 92 points. The preliminary data released on Friday suggested that consumers are not feeling as optimistic as they did last month, and neither are they as positive as analysts imagined.

The April data marks the fourth consecutive monthly decline. Richard Curtin, the survey’s chief economist of the survey explained that, “consumers reported a slowdown in expected wage gains, weakening inflation-adjusted income expectations, and growing concerns that slowing economic growth would reduce the pace of job creation [...] These apprehensions should ease as the economy rebounds from its dismal start in the first quarter of 2016.”

Related Link: Chipotle Sentiment "Choppy But Recovering," Credit Suisse Says

On Friday afternoon, Benzinga contacted Brian Dolan, head market strategist at DriveWealth LLC, for some comment. The expert shared a quick take on the issue, "The decline in Michigan sentiment is another reminder that all is not well with US consumers despite solid jobs data. Following on disappointing March retail sales, today's dip augurs poorly for a quick rebound in consumer activity in the second quarter."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.