University of Michigan Consumer Confidence drops to lowest level in a year

The August preliminary University of Michigan Confidence number, which is the first survey of consumer confidence following the stock market rout and recent turmoil in the markets, indicates that confidence has been shaken. Confidence plunged to 83.3 in early August, the lowest level in a year. The consensus had been for a drop to 88 from 91.4 in July. Both current conditions and future expectations slipped. Inflation expectations also dropped by .2%, to 3.2% for the next year and 2.9% over the next five years.