U.S. Consumer Sentiment Largely Unchanged in August
August 14 2020 - 10:45AM
Dow Jones News
By Maria Martinez
Consumer sentiment in the U.S. remained almost flat in August,
according to a University of Michigan survey released Friday.
The final reading of the index of consumer sentiment stood at
72.8 in August, up from July's 72.5. Economists surveyed by The
Wall Street Journal had expected the indicator to be at 71.0.
Two significant changes since April have been that consumers
have become more pessimistic about the five-year economic outlook
and more optimistic about buying conditions.
"Lower interest rates by the Fed prompted more favorable buying,
especially for homes, and the D.C. policy gridlock was responsible
for the weaker outlook," Richard Curtin, the survey's chief
economist, said. "The overall confidence in economic policies fell
to the lowest level since [President] Trump first entered
office."
Consumers' assessment of the current economic conditions fell to
82.5 in August from 82.8 in July.
The index of consumer expectations--which reflects the balance
of respondents anticipating improved business conditions in the
next six months--rose to 66.5 in August from July's 65.9.
The data, compiled after a minimum of 500 interviews, covers
three broad areas of consumer sentiment: personal finances,
business conditions and buying conditions.
"Bad economic times are anticipated to persist not only during
the year ahead, but the majority of consumers expect no return to a
period of uninterrupted growth over the next five years," Mr.
Curtin said.
Consumers anticipate declines in the national unemployment rate
to significantly slow and expect a rising rate of inflation during
the year ahead. While a positive growth rate in consumption is
anticipated in the second half of the year, it will hardly herald
the end of the coronavirus recession, Mr. Curtin said.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
August 14, 2020 10:30 ET (14:30 GMT)
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