US consumer sentiment ticks up in August but still at worst level this year
US consumer sentiment deteriorated in August, according to a final reading from the University of Michigan.
The consumer sentiment index fell to 96.2 from 97.9 in July and 96.8 in August last year, remaining at its lowest level since January but topping expectations for a drop to 95.5.
The index of current conditions printed at 110.3 in August from 114.4 in July and 110.9 in the same month a year ago.
The index of consumer expectations nudged down to 87.1 from 87.3 the month before and 87.7 in August 2017.
Surveys of Consumers chief economist Richard Curtin said: "Most of the August decline was in the current economic conditions Index, which fell to its lowest level since November 2016. These results stand in sharp contrast to the recent very favourable report on growth in the national economy. The dominating weakness was related to less favourable assessments of buying conditions, mainly due to less favourable perceptions of market prices and to a lesser extent, rising interest rates.
"Future income and job certainty have become the main reasons cited by consumers for their positive spending views. This shift from attractive prices and interest rates to income is typical of the later stages of expansions, with references to income and job certainty peaking just before downturns. While nominal wage expectations and employment gains have remained strong, the anticipated inflation rate has also increased to its highest level in four years. Although a higher inflation rate is partly due to the potential for increased tariffs, the main cause has been the expectation of robust economic growth."