Richard Curtin. Image courtesy of D.C. Goings
Diane Swanbrow, Swanbrow [a] umich (p) edu, 734-647-9069, or Surveys of Consumers, 734-763-5224, or Thomson Reuters PR Hotline: 646-223-7222, ext. ANN ARBOR-Consumer confidence eased in August after reaching its highest level in six years in the prior month, according to University of Michigan economist Richard Curtin, director of the Thomson Reuters/U-M Surveys of Consumers. Conducted by the U-M Institute for Social Research since 1946, the surveys monitor consumer attitudes and expectations. "The August survey indicates that the recent confidence gains have stalled as consumers await decisions on the federal budget and monetary policy," Curtin said. "Unlike a year ago, consumers do not anticipate that the budgetary issues will engender a similar Congressional stalemate, but few express a great deal of confidence in the economic policies of the government. "A renewed congressional storm as well as rising market interest rates could trim the anticipated gains in consumer spending and weaken the pace of overall economic growth. Without this unneeded harm, consumer confidence will regain its footing and act to expand spending in the year ahead." The small retrenchment still meant that the Sentiment Index was significantly higher than a year ago and still points toward increases in consumer spending during the year ahead, according to Curtin.
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