30/08/2011: US Consumer Sentiment collapses in August

The US Conference Board Consumer Confidence index fell in August, confirming other readings of Consumer Sentiment in the US released earlier (see chart below). The Index now stands at 44.5, down from 59.2 in July.

• The Present Situation Index decreased to 33.3 from 35.7.
  
• The Expectations Index decreased to 51.9 from 74.9 last month.
  
• US Consumer Confidence index is now at its lowest level since April 2009 (40.8).
  
• Consumers claiming business conditions are "bad" increased to 40.6 percent from 38.7 percent,
  
• Consumers' assessment of employment conditions was more pessimistic than last month. Those claiming jobs are "hard to get" increased to 49.1 percent from 44.8 percent, while those stating jobs are "plentiful" declined to 4.7 percent from 5.1 percent.
• Those expecting business conditions to improve over the next 6 months decreased to 11.8 percent from 17.9 percent,
  
• Those expecting business conditions to worsen over the next 6 months surged to 24.6 percent from 16.1 percent.
  
• Those anticipating more jobs in the medium term future decreased to 11.4 percent from 16.9 percent, while those expecting fewer jobs increased to 31.5 percent from 22.2 percent.
• The proportion of consumers anticipating an increase in their incomes declined to 14.3 percent from 15.9 percent.

Earlier-released University of Michigan Consumer Sentiment Index for August 2011 posted a decline from 63.7 in July to 54.9 - the lowest reading since May 1980 (see chart).