US: UoM Consumer Sentiment Index declines to 70.3 (final) in August from 81.2

UoM Consumer Sentiment Index in US dropped in August.
US Dollar Index stays in the negative territory around 92.70.

Eren Sengezer FXStreet

Consumer confidence in the US deteriorated sharply in August with the University of Michigan's Consumer Sentiment Index dropping to 70.3 in August (final) from 81.2 in July. This reading missed the market expectation of 70.7.

Further details of the publication revealed that the Current Economic Conditions Index declined to 78.5 from 84.5 and the Consumer Expectations Index dropped to 65.1 from 79.

Commenting on the data, "personal financial prospects continued to worsen due to smaller income gains amid higher inflationary trends," said Surveys of Consumers chief economist Richard Curtin. "Consumers' extreme reactions were due to the surging Delta variant, higher inflation, slower wage growth, and smaller declines in unemployment."

Market reaction

The greenback showed no reaction to this data as investors keep a close eye on FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium. As of writing, the US Dollar Index was down 0.4% on the day at 92.68.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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