Consumer confidence fell to 87.2 in August, down 4.7 points from the previous month according to the University of Michigan Consumer Sentiment Index. Despite being at the lowest level in 11 months, August’s reading was still higher than in any month prior to May 2007.
“A raft of recent events have been viewed as negative economic indicators by many consumers, including falling commodity prices, weakened Chinese and other economies as well as continued stresses on European countries,” says Richard Curtin, Chief Economist for UM Surveys of Consumers. “Although most believe the domestic economy is largely insulated, they have lowered the pace of job and wage growth that they now anticipate.”
The Current Economic Conditions Index fell 3.9 points to 101.2, but was 2.3 percent higher than September of last year. The Index of Consumer Expectations fell 5.2 points to 78.2, but grew 3.7 percent year over year.