Consumer Confidence Gets Small Boost

Consumer confidence improved a bit in early August due to a drop in gasoline prices, but worries about a recession still weighed on consumers' minds. The Reuters/University of Michigan Surveys of Consumers said its index of consumer confidence edged up to 61.7 in early August from 61.2 in late July. "There is little doubt among consumers about the likelihood of a recession," Richard Curtin, director of the surveys, said. Fears of a recession led to a drop in the report's current conditions index to 69.3 in early August from 73.1 in late July. The August reading was the second lowest since 1980. The lowest was set in June. The report's expectations index, however, rose to 56.8 from 53.5 in late July. A bright spot in the latest index was a decline in consumers' inflation expectations in the next 12 months. The one-year inflation expectations reading slipped to 4.8% from July's 5.1%.

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Date Last Updated: 08/25/2008