Consumer Sentiment in U.S. Declines to Lowest in Almost a Year
The upside of the report shows consumers view their personal finance situation as "very favorable."
Sentiment index decreased to 95.3 (est. 98) from prior month’s 97.9; lowest since Sept., below all analyst estimates Current conditions gauge, which measures Americans’ perceptions of their finances, fell to 107.8 from 114.4 in July; 6.6-point drop is biggest since Aug. 2011. Expectations measure unchanged at 87.3. Expected change in prices during the next year unchanged at 2.9%.
Consumers showed a broad drop in confidence about major purchases, a possible caution signal for spending following strong gains in the second quarter. Buying conditions for large household durable goods slipped to the lowest level in almost four years, vehicle-buying views were the least favorable since 2013, and home-buying conditions were seen less favorably than any time in about a decade.
Respondents also continued to express concern about how trade tensions may affect the economy. Negative references to levies remained widespread, with 32% citing unfavorable references to the trade policy in early August, according to the report, following 35% in July.
“Consumers voiced the least favorable views on pricing for household durables in nearly ten years,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “The recent favorable GDP report had only a small positive impact on growth prospects for the economy and on unemployment expectations.”
Personal finance views remained “very favorable” as 53% of households cited recent financial gains Inflation rate over next five to 10 years seen at 2.5% from 2.4% the prior month.