August Consumer Sentiment Revised Higher

Ann Arbor, MI, Aug. 26, 2011 -- Consumer sentiment declined in August as consumers lost faith in the government's ability to prevent  another recession, according to the Thomson Reuters/University of Michigan sentiment index.

The index edged up from its mid-August level but was in line with recession-era lows. The index has only been lower in three other surveys, which were taken in April and May 1980 and November 2008.

The final August reading was at 55.7, down from 63.7 the month before. It was slightly better than August's preliminary reading of 54.9.

"Consumers have shifted from being optimistic about the potential impact of monetary and fiscal policies to a sense of despair and pessimism about the role of the government," survey director Richard Curtin said in a press release.