US consumer sentiment eases in August

Consumer sentiment in the US unexpectedly deteriorated in August, according to final figures released on Friday.

The University of Michigan’s final reading of the consumer sentiment index fell to 89.8 from 90.0 the month before and 91.9 in August last year. It was below the flash reading of 90.4.

Meanwhile, the current economic conditions index declined to 107.0 from 109.0 in July, but was above the 105.1 reading in the same month last year. This was ahead of the flash estimate of 106.1.

Finally, the index of consumer expectations edged up to 78.7 in August from 77.8 in July, but was down from 83.4 last year and compared to the flash estimate of 80.3.

Surveys of Consumers chief economist Richard Curtin said: “Confidence eased back in late August to register a trivial decline from the July reading. Less favourable personal financial prospects were largely offset by a slight improvement in the outlook for the overall economy. Most of the weakness in personal finances was among younger households who cited higher expenses than anticipated as well as slightly smaller expected income gains.

“Importantly, long term inflation expectations fell to the lowest level ever recorded, with near term inflation expectations anchored to that same low level. Just as low inflation has provided strong support for real income gains, low interest rates have increasingly become the sole driver of large discretionary expenditures.”

Curtain said that wile consumers increasingly expect a Clinton victory, they remained nearly equally split on which candidate would actually improve overall economic conditions or their own personal finances.