Led by a collapse in Americans’ views of the current situation, University of Michigan’s Sentiment Survey dropped to 11-month lows, dramatically missing expectations for a rise.
- Sentiment index decreased to 95.3 (est. 98) from prior month’s 97.9; lowest since Sept., below all analyst estimates
- Current conditions gauge, which measures Americans’ perceptions of their finances, fell to 107.8 from 114.4 in July; 6.6-point drop is biggest since Aug. 2011
- Expectations measure unchanged at 87.3
As Bloomberg reports, consumers showed a broad drop in confidence about major purchases, a possible caution signal for spending following strong gains in the second quarter.
Buying conditions for large household durable goods slipped to the lowest level in almost four years;
Vehicle-buying views were the least favorable since 2013;
and home-buying conditions were seen less favorably than any time in about a decade.
“Consumers voiced the least favorable views on pricing for household durables in nearly ten years,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “The recent favorable GDP report had only a small positive impact on growth prospects for the economy and on unemployment expectations.”