Consumer confidence improved slightly in August, with consumers viewing their financial circumstances more favorably due to debt reduction, according to the Thomson Reuters/University of Michigan Survey of Consumers.
The Consumer Sentiment Index was 74.3 in August, up two points from 72.3 in July. Consumer sentiment grew 18.5 points year-over-year, up from 55.8 last August, when the Congressional debt ceiling debate forced consumer sentiment to “disastrous lows,” according to the survey.
Despite the uptick, most consumers said they did not expect any wage gains in the coming year. In fact, most expected falling incomes due to inflation, the survey found.
Though consumers reported debt reduction, most said they did not expect those improvements to last long. Asked about the potential for economic growth, most respondents said they expected conditions to remain unfavorable through 2012.
Read more
