U.S. Consumer Sentiment Index Unexpectedly Edges Lower In August

(RTTNews) - Consumer sentiment in the U.S. unexpectedly saw a slight deterioration in the month of August, the University of Michigan revealed in a report on Friday.

The report said the preliminary reading on the consumer sentiment index for August came in at 92.9 compared to the final July reading of 93.1.

The modest decrease came as a surprise to economists, who had expected the consumer sentiment index to climb to a reading of 93.5.

Richard Curtin, the survey's chief economist, said, "Consumer confidence was virtually unchanged in early August from the July reading, marking its highest nine month average since 2004."

"Renewed strength in personal finances largely offset slight declines in prospects for the national economy and buying conditions," he added.

The slight drop by the headline consumer sentiment index reflected modest decreases in both the assessment of current conditions and consumer expectations.

The current economic conditions index edged down to 107.1 in August from 107.2 in July, while the index of consumer expectations dipped to 83.8 from 84.1.

The report also said one-year inflation expectations held steady at 2.8 percent, but five-to-ten-year inflation expectations slipped a tenth of a percentage point to 2.7 percent.