New York, NY, September 16, 2005-- The University of Michigan's preliminary index of consumer sentiment fell to 76.9 from 89.1 in August.
Economists' had estimated that the index would fall 78 to 90.5. The preliminary reading is based on a phone survey of about 300 households. The university will release a final report with a sample size of 500 on Sept. 30.
The current conditions index, which reflects Americans' perception of their financial situation and whether it's a good time to buy big-ticket items, fell to 97.7 from 108.2 in August. The expectations index, based on optimism about the next one to five years, fell to 63.6 from 76.9 last month.
Hurricane Katrina may cost the economy 400,000 lost jobs and cut economic growth by a percentage point in the second half of the year, according to the Congressional Budget Office. The storm helped push initial claims for unemployment benefits up by 71,000 last week, the most in more than nine years, the Labor Department said yesterday.
