Economy

Consumer Sentiment at Nine-Month Low
Written by Sandy Williams
August 15, 2014
Consumer confidence hit its lowest level in nine months according to the University of Michigan/Thomson Reuters Consumer Sentiment Index. The preliminary sentiment index fell 2.6 points to 79.2 in the August survey, surprising economists who expected an uptick to 82.3 from the final July reading of 81.8.
The survey’s outlook index fell to 66.2 from 71.8. Consumers are expecting higher prices in the coming year. The survey’s one-year inflation expectation rose to 3.4 percent from 3.3 percent, while the survey’s five-to-10-year inflation outlook rose to 2.8 percent from 2.7 percent.
Consumers are pessimistic about wage gains keeping pace with inflation. The recent stock correction is also thought to be a contributor to the weaker sentiment reading for August. Retail sales are another concern, with a Commerce Department report last week showing that July sales had stalled, not reaching economist expectations of a 0.2 increase.
“While the data implies differential prospects for retailers, consumer confidence remains at moderately positive levels, high enough to support a continued expansion in personal consumption during the year ahead,” said survey director Richard Curtin in a statement.
Although the consumer sentiment index fell, the barometer of current economic conditions rose higher than expected to 99.6 from 97.4—the highest level since July 2007.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.

Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.

Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.

Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.

AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.