Richard Curtin. Image courtesy of D.C. Goings
ANN ARBOR, Mich.-Consumer confidence improved slightly in August due to consumers' more favorable evaluations of their present financial situations, according to University of Michigan economist Richard Curtin, director of the Thomson Reuters/University of Michigan Surveys of Consumers. The Surveys, conducted by the U-M Institute for Social Research (ISR), have been monitoring consumer attitudes and expectations for over 60 years. Rather than citing income changes, consumers were more likely to cite reductions in the amount of their outstanding debt, according to Curtin. These improvements, however, did not extend into the future, as their financial prospects for the year ahead remained unchanged at negative levels. The majority of consumers anticipated no wage gains in the year ahead, and the majority expected falling inflation-adjusted incomes. Perhaps more distressing, half reported that their financial situation was now worse than it was five years ago, and half expected no improvement in the next five years. "Despite the August gain, confidence has been in a holding pattern during the past few months," said Curtin.
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