Consumer Sentiment for August was expected to be little changed from where it was in July (81.2). The actual data (based on responses collected over the first half of the month) showed consumer sentiment undercutting last year’s lows and dropping to its lowest in nearly a decade. While consumers’ assessment of current conditions moved lower in August, the collapse in the overall sentiment index was really fueled by more dour expectations about the road ahead. Consumer expectations indexes are considered leading indicators for the economy overall and the August collapse may point to increased economic headwinds as we head toward the end of the year.
