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: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.
US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.
Manufacturing in New York state improves again in August
Business activity in New York state improved modestly in August. It was just the second positive reading for the general business conditions index in six months.