Bloomberg
Published Aug 16, 2019 15:00
Updated Aug 16, 2019 15:14
U.S. Consumer Sentiment Drops to Seven-Month Low on Trade Fears
(Bloomberg) -- U.S. consumer sentiment plummeted to a seven-month low in August on growing concerns about the economy even as the labor market shows few signs of weakening from robust levels.
The University of Michigan's preliminary sentiment index slumped to 92.1 from July’s 98.4, missing all forecasts in Bloomberg's survey of economists. The gauge of current conditions decreased to 107.4 while the expectations index dropped to 82.3, bringing both readings to the lowest levels since early this year.
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Official's View
“The main takeaway for consumers from the first cut in interest rates in a decade was to increase apprehensions about a possible recession,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “Consumers concluded, following the Fed’s lead, that they may need to adopt a precautionary spending outlook in anticipation of a potential recession.”
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A measure of buying conditions for household durable goods fell to the lowest since 2015. Expectations for personal finances retreated from the best level since 2003.
©2019 Bloomberg L.P.
Written By: Bloomberg
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