US consumer sentiment in August fell to its lowest level in almost a decade, according to data released by the University of Michigan on Friday.
The index of consumer sentiment has declined by 11 points to 70.2 in August, from 81.2 in July, marking its lowest level since December 2011, according to a survey compiled from around 500 consumers.
The index, which rates the relative level of current and future economic conditions, was expected to remain unchanged at 81.2.
While the index of current economic conditions fell by 6.6 points to 77.9 in August, from 84.5 the previous month, the index of consumer expectations plummeted by 13.8 points to 65.2, from 79.0, according to the data.
“Consumers reported a stunning loss of confidence in the first half of August,” Richard Curtin, the chief economist with Surveys of Consumers, said in a statement.
“Moreover, the losses covered all aspects of the economy, from personal finances to prospects for the economy, including inflation and unemployment. There is little doubt that the pandemic’s resurgence due to the Delta variant has been met with a mixture of reason and emotion,” he noted.
Consumers will likely shift toward optimism in months ahead with control of COVID-19’s Delta variant, Curtin added.
Source: Anadolu Agency