New York, NY, United States (4E) – Sentiment by U.S. consumers has surprisingly dropped in August, according to the preliminary results of a closely tracked survey released Friday.
The Reuters/University of Michigan’s consumer sentiment index for August dropped to 79.2 level following a final reading of 81.8 in July.
The decline surprised many economists, who had forecast the consumer sentiment index to rise to a 82.3 reading.
The lower number in the headline index was partially attributed to the drop by the survey’s consumer expectations measure, which slid to 66.2 this month from July’s 71.8.
Meanwhile, the report said the gauge of current economic conditions jumped to 99.6 this month from 97.4 in July.
The survey’s inflation expectation for the next 12 months climbed to 3.4 percent in August from 3.3 percent in the prior month, while the inflation outlook for the next five to 10 years edged higher to 2.8 percent from 2.7 percent.