U of Michigan Consumer Confidence Remains at Low of Year in August

Tightening credit, rising layoffs, and equity and housing market turmoil, have all lead consumer confidence to plunge in August to the lowest level of the year. The final reading was essentially unchanged at 83.4 from the preliminary estimate of 83.3. This is a considerable drop from the 90.4 reading in July, or 96.9 level at the beginning of the year, in January. Versus the preliminary report, current conditions were revised higher and future conditions were revised lower. Inflation expectations held steady at 3.2% for the next year and 2.9% over the next five years.