Economic Notes for the Week of September 4th

Consumer confidence fell in August unexpectedly down to 60.6, versus the consensus estimate of 65.9.  A deterioration in the ‘expectations’ component was the biggest reason for the drop, while the ‘present’ conditions and ‘employment’ measures were relatively flat.  As we know, sentiment measures can be quite fickle.

Conversely, University of Michigan consumer sentiment rose to a three-month high in August, from 72.3 to 74.3, and beating an expected figure of 73.6.  Current conditions scored highest and were sharply upward, while expectations for the more immediate future (6 months from now) fell a few points.

Consumer spending gained +0.4%, which was slightly below consensus by a tenth-of a percent or so and was the first gain in real spending for several months.  Personal income was up +0.3% for July, which was right on target with forecast. Read more