Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised up slightly in late August, from 54.9 to 55.7, but that is still an 8 point drop from July’s level. Sentiment, which has fallen nearly 20 points from a cyclical high of 77.5 in February, sits a mere 0.4 points above its low during the depths of the recent financial crisis (55.3 in November 2008). While consumers’ judgment over the current conditions has weakened considerably as of late, the majority of the the downward plunge in the overall sentiment index has come from the consumer expectations component—which has fallen 22.1 points over the past three months. Consumer expectations, at a level of 47.4, are at a 31-year low. Shorter-term median inflation expectations (one-year ahead) were revised up from 3.4 percent to 3.5 percent in late August, 0.1 percentage points above July’s reading. However, longer-term inflation expectations (five-years ahead) remained flat at 2.9 percent.