U.S. consumer sentiment drops to 11-month low in August … MARKETWATCH
U.S. consumer sentiment drops to 11-month low in August
Consumers report difficult conditions for buying vehicles, homes
By STEVE GOLDSTEIN
The numbers: The University of Michigan said its consumer sentiment index in August fell to 95.3, down from 97.9 in July, the lowest level in 11 months.
Economists polled by MarketWatch expected a reading of 98.5.
What happened: The decline concentrated among households in the bottom third of the income distribution, the University of Michigan said. And the concern was rising prices.
Buying conditions for large household durables sank to the lowest level in nearly four years, the University of Michigan said, and for vehicles in particular the worst in the last four years.
Home prices meanwhile were judged less favorably than anytime since 2006.
The big picture: This is the first time in a while where perceptions of inflation really impacted the report. That said, the one-year anticipated inflation rate stayed at 2.9%.