The Strategist

U.S. consumer sentiment index falls worse than forecast in August

08/30/2021 - 08:40

The University of Michigan Consumer Sentiment Index, a measure of household confidence in the U.S. economy, dropped to 70.3 points in August from 81.2 points in July, according to its website.

Dietmar Rabich
Dietmar Rabich
Analysts polled by DailyFX expected the index to fall to 70.7 points for the month. The first estimate showed the index falling to 70.2 points.

The index of current economic conditions in the United States, according to a final estimate, fell to 78.5 points from 84.5 points in July. The first estimate of the index fell to 77.9 points. Index of economic expectations declined to 65.1 points from 79 points a month earlier. A preliminary estimate showed a decrease in the index to 65.2 points.

The University of Michigan Consumer Sentiment Index is compiled from a monthly survey of at least 500 U.S. households on 50 key questions aimed at identifying changes in consumer expectations about the economic climate, personal income and consumption.

The indicator is released twice a month in the form of initial and final estimates and influences the dynamics of the dollar, stock markets and U.S. government bonds.