Last Update: 28-Aug-15 18:15 ET
- The University of Michigan Consumer Sentiment Index was revised down to 91.9 in the final July reading from a preliminary reading of 92.9. The index is down from 93.1 in June. The Briefing.com Consensus expected the Consumer Sentiment Index to be revised up to 93.0.
- The move in consumer sentiment was opposite of the trend in the Conference Board's Consumer Confidence Index. That index spiked to 101.5, its highest level since January, from 91.0 in July.
- It is not unusual for the two sentiment indices to show differing trends. In this case, the Consumer Sentiment Index was likely impacted more by recent down trends in the equity market than the Consumer Confidence Index.
- Lower gasoline price and improvements in labor market conditions likely offset some weakness from equity.
- The Current Conditions Index was revised down to 105.1 from 107.1 in the preliminary release.
- The Expectations Index was revised down to 83.4 from 83.8.
- The drop in consumer sentiment is unlikely to have much of an impact on consumption trends. Consumption relies on income growth. As long as the labor market continues to strengthen, consumption growth should naturally follow.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.