U. of Michigan Sentiment Index Falls to 83.3 in August
The University of Michigan consumer sentiment index was preliminarily reported to have fallen to 83.3 in August from 90.4 in July. The August result compared to a median forecast of 88.0. Earlier results for the overall index were 85.3 in June, 88.3 in May.
The economic outlook sub-index was preliminarily reported to have fallen to 74.1 in August from 81.5 in July, and these followed results of 74.7 in June, 77.6 in May.
The current conditions sub-index was preliminarily reported to have fallen to 97.7 in August from 104.5 in July, with earlier outcomes of 101.9 in June, 105.1 in May.
The survey’s one-year headline inflation expectation was a preliminary 3.2% in August, which compares to recent readings of 3.4% in July, 3.4% in June, 3.3% in May, 3.3% in April, and 3.0% in each of the prior three months. The June/July readings were the highest since last August (which was at the end of a string of sharp energy price increases). This result obviously reflects bad news at the gas pump and probably in the grocery store as well. The pinch on discretionary spending from higher energy and food prices remain an issue for consumers.