Consumer Sentiment Rises Modestly in August
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According to data released on Friday, U.S. consumer sentiment edged above economists expectations in early August but still shoppers do not see much improvement on the horizon.
The Thomson Reuters/University of Michigan index showed that consumer sentiment rose to 69.6 to 67.8 in July, beating the economist consensus of 69.3. The index is not much higher than at the same point last year as weakness in the jobs market and worries over income loom over consumers.
"The gain was too small to represent a meaningful improvement," Richard Curtin, director of the surveys, said in a statement. "Consumers have increasingly come to expect lackluster income and job growth for an extended period of time."
The jobs market has kept consumers from feeling comfortable about spending in during the recovery. Consumer spending accounts for 70 percent of the overall economy.
"While consumers increasingly believed the worst of the downturn was over, the majority expected that overall economic conditions would remain largely unchanged during the year ahead," Curtin said.
The survey showed that the consumer’s feeling about the current state of the economy rose to 78.3 from 76.5 in July, while economists had expected the reading to remain unchanged.
The gauge in the survey for consumer expectations rose to 64.1 this month from 62.3 in July, while barometer for the consumer’s 12-month economic outlook rose to 69 from 66.
The Thomson Reuters/University of Michigan index showed that consumer sentiment rose to 69.6 to 67.8 in July, beating the economist consensus of 69.3. The index is not much higher than at the same point last year as weakness in the jobs market and worries over income loom over consumers.
"The gain was too small to represent a meaningful improvement," Richard Curtin, director of the surveys, said in a statement. "Consumers have increasingly come to expect lackluster income and job growth for an extended period of time."
The jobs market has kept consumers from feeling comfortable about spending in during the recovery. Consumer spending accounts for 70 percent of the overall economy.
"While consumers increasingly believed the worst of the downturn was over, the majority expected that overall economic conditions would remain largely unchanged during the year ahead," Curtin said.
The survey showed that the consumer’s feeling about the current state of the economy rose to 78.3 from 76.5 in July, while economists had expected the reading to remain unchanged.
The gauge in the survey for consumer expectations rose to 64.1 this month from 62.3 in July, while barometer for the consumer’s 12-month economic outlook rose to 69 from 66.
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