Consumer Sentiment slipped 0.2 points in August to 89.8, according to the University of Michigan Consumer Sentiment Index.
The Current Economic Conditions Index fell 2 points to 107.0, while the Index of Consumer Expectations rose 1.1 point to 78.7.
“Less favorable personal financial prospects were largely offset by a slight improvement in the outlook for the overall economy,” said Richard Curtin, Chief Economist of UM Surveys of Consumers. “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.