Page 14 - Policy_Economic_Report_September2020

Policy and Economic Report:
Oil & Gas Market

preliminary sentiment index of the University of Michigan rose to 78.9 from 74.1 at the end of August.
According to a survey conducted by Bloomberg, the median estimate reached 75 during the month.

The measure of expectations rose 4.8 points to 73.3, also a six-month high, while a gauge of current
conditions increased 4.6 points to 87.5.

Only 16 per cent of the respondents expected the economy to further worsen this year consistent with
an economy and labour market that are slowly recovering. However, the consumer sentiments are still
well below the pre-pandemic levels and few Americans are upbeat about the prospects of their finances.

The S&P 500 continued to swing between gains and losses as investors searched for new catalysts to
provide direction to the global markets. Treasuries were little changed and the dollar strengthened.
Another study shows that the labour market in the country has been gradually improving as the number
of people applying for jobless benefits declined during the month.

Consumers of durable goods are more sanguine about the purchasing durable goods. With the US
elections approaching, public attitude about the economy, job market and financial situations will play a
crucial role in deciding which candidate they support for president. According to Mr. Richard Curtin,
director of the survey at the University of Michigan, over the next several months, there are two factors
that could cause volatile shifts and steep losses in consumer confidence: how the election is decided and
the delays in obtaining vaccinations.

The report also indicates that the expectation for inflation has also declined slightly in September.
Consumers anticipated inflation rising 2.7 per cent in the year ahead, down from 3.1 per cent in August,
while longer term inflation expectations also fell.

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September 2020