Tag Archives: Consumer spending

After a poor reading earlier in the month, consumer sentiment in August recovered more than expected, despite concerns about the economy's future direction. The University of Michigan/Thomson Reuters Index of Consumer Sentiment climbed to 82.5 in the final August reading, slightly better than July's final value of 81.8 but a sharp upturn from a mid-month reading of 79.2.

The Conference Board's Consumer Confidence Index climbed 2.1 points to 92.4 in the group's August reading, marking the highest level of confidence since October 2007. August's increase was driven by an increase in Conference Board's measure of current economic sentiment, which grew to 94.6 from 87.9 in July. Most of that was spurred by more promising reports over the spring and summer as business and labor market indicators improved.

The Thomson Reuters/University of Michigan Index of Consumer Sentiment came in at 79.2 in the preliminary August reading, down from a final reading of 81.8 in July and several points below the consensus forecast of 82.3. It was the lowest reading since last November, when the country was still shaking off the effects of October's government shutdown.

A final look at consumer sentiment for the month of July shows American confidence in the economy softened compared to June as expectations for the rest of the year became more tempered. The University of Michigan/Thomson Reuters Index of Consumer Sentiment finished July at a reading of 81.8, below the 82.5 recorded in June but better than the 81.3 captured in the month's preliminary survey.

The Thomson Reuters/University of Michigan Index of Consumer Sentiment measured 81.3 in its first July reading, falling more than a point from its final June reading of 82.5. Analysts surveyed before Friday's release had predicted the index would climb up slightly to 83.

In a survey of nearly 15,000 U.S. adults, Gallup found the daily amount spent by Americans was an average $91, down from a six-year high of $98 the month prior and about level with last year. The June record for average daily spending is $104, achieved in 2008. Gallup writer Rebecca Riffkin said June's average "suggests a mixed bag for the economy."

A notable drop in gross domestic product (GDP) in the first quarter—the largest decline since 2009, according to the Bureau of Economic Analysis—did not appear to shake consumer confidence, according to the June Survey of Consumers from Thomson Reuters and the University of Michigan. While GDP fell 2.9 percent in the first quarter, the June sentiment survey actually showed slight improvement over the month with a gain of 0.7 percent.

Consumers are continuing to progress on the long journey toward restoring their faith in the American economy, according to a monthly Consumer Confidence Index report released by the Conference Board. The index, one of the leading predictors of economic growth in all sectors of the economy, now stands at 85.2, up from 82.2 in May. The largely positive findings could indicate that consumers are more ready to commit to larger, longer-term purchases.

After dipping in April, the Conference Board's Consumer Confidence Index saw modest improvement in May as optimism for the job market grew. The index rebounded to 83.0 in the latest reading, up from a downwardly revised 81.7 in April, the group reported Tuesday.

In its most recent monthly release, Deloitte reported a slight rise in its Consumer Spending Index, which measured 3.88 as of the end of the month. Daniel Bachman, senior U.S. economist for Deloitte, said the improvement was thanks to April's decrease in initial unemployment claims and a double-digit pickup in real median new home prices.