Consumer Sentiment Down Slightly in August

Ann Arbor, MI, August 17, 2015—Consumer sentiment fell slightly in August to 92.9 from July’s 93.1 reading, according to preliminary results from the University of Michigan Survey of Consumers.

“Consumer confidence was virtually unchanged in early August from the July reading, marking its highest nine month average since 2004,” according to Survey of Consumers chief economist, Richard Curtin. “Renewed strength in personal finances largely offset slight declines in prospects for the national economy and buying conditions. The declines in prospects for the economy probably reflect the expected increases in interest rates, while the eventual but small impacts from falling commodity prices, the devaluation of the renminbi, and a weaker global economy have yet to occur (other than from declines in oil prices). The most important offset to these concerns is that consumption expenditures can be expected to expand at an annual rate of 3.0% in 2015 and 2016, prompting continuing net gains in jobs and incomes.”