The numbers: The final reading of the University of Michigan’s consumer-sentiment index in August was 96.2, below July’s level of 97.9. The preliminary reading was 95.3. Economists had expected a final reading of 95.5. Despite the improvement, the sentiment level is at its lowest level since January.
What happened: Most of the August decline was in the current economic conditions index, which fell to its lowest level in almost two years. The worsening mood came despite strong gross domestic product. The causes of the decline were less favorable assessments of buying conditions, caused by worries about prices and rising interest rates. The anticipated inflation rate increased to its highest level in four years.
Big picture: Sentiment is still trending higher and economists do not expect a material slowdown in consumer spending. The survey may be capturing concerns over higher inflation and uncertainty regarding tariffs, economists said. Other measures of consumer confidence have been strong. The Conference Board index rose more than five points to a new 18-year high in August.
Market reaction: Stocks
DJIA, +0.06%
moved higher in early trading on Friday on the better-than-expected sentiment reading.
Source : MTV
