BREXIT SOURS ECONOMIC OUTLOOK FOR US CONSUMERS
Americans took a dimmer outlook on the economy this month due largely to the UK’s vote to leave the EU, though their impression of the current state of the economy remained solid.The University of Michigan said Friday its monthly index of consumer sentiment fell 4.3% to a reading of 89.5 in July, the second-lowest level of the year. Economists look at consumer sentiment because when households feel better about the economy, they typically spend more, boosting economic growth.A measure of consumers’ view of the current state of the economy slipped but remained high, at a reading of 108.7. But a measure of their expectations—meaning where they think the economy is headed—fell 6.4% to 77.1, the lowest level since 2014.Richard Curtin, the survey’s chief economist, said the decline largely reflected falling confidence among highly paid Americans after so-called Brexit. These households lost a portion of their wealthy immediately after the vote as stock prices declined.