Here are the primary insights from the UMich US Consumer Sentiment Survey that was published this morning.
Consumer confidence experienced a noticeable setback this month. The preliminary index for August decreased to 51.0, representing a clear drop from the 55.2 reported in July. This result also missed the consensus forecast of 55.0 by a wide margin.
Anxiety regarding the cost of living played a major role in this downturn. When discussing the decline, survey director Joanne Hsu highlighted "notably large reductions… among older consumers, lower-income consumers, and those without a college degree."
In addition, forecasts for inflation over the next year crept up to 4.3%, a shift that mirrors the latest upward swing in gasoline prices. At the same time, the inflation measure for the 5 to 10 year timeframe was recorded at 3.3%.
Even with these economic pressures, there is a silver lining in the report. Consumers are keeping a steady outlook on the job market, as worries surrounding employment have stayed relatively low.
#economy #markets #inflation #employment #affordability
Consumer confidence experienced a noticeable setback this month. The preliminary index for August decreased to 51.0, representing a clear drop from the 55.2 reported in July. This result also missed the consensus forecast of 55.0 by a wide margin.
Anxiety regarding the cost of living played a major role in this downturn. When discussing the decline, survey director Joanne Hsu highlighted "notably large reductions… among older consumers, lower-income consumers, and those without a college degree."
In addition, forecasts for inflation over the next year crept up to 4.3%, a shift that mirrors the latest upward swing in gasoline prices. At the same time, the inflation measure for the 5 to 10 year timeframe was recorded at 3.3%.
Even with these economic pressures, there is a silver lining in the report. Consumers are keeping a steady outlook on the job market, as worries surrounding employment have stayed relatively low.
#economy #markets #inflation #employment #affordability