Econoday Economic Report: August
By gvwebguy
Published 5 years ago on
August 19, 2019
Share
[aggregation-styles]
Econoday
Econoday
Not since the government shutdown early in the year has consumer sentiment been this low, at 92.1 for preliminary August in a very unexpected and sharp decline from 98.4 in July. A key reason for the drop according to the report is the US tariff hike on China that is set to take effect at the beginning of next month (though some products will be exempt until Christmas).
This was spontaneously cited by 33 percent of the sample and near a prior peak on tariff issues of 37 percent. Another reason for the drop is the Federal Reserve’s rate cut last month, one that the report says is raising apprehensions about a possible recession. Weakness in August’s data is centered in the expectations component, down more than 8 points to 82.3 and reflecting new concerns over income prospects. The current conditions component is down more than 3 points so far this month to 107.4. Inflation expectations remain modest and steady though they did rise by 1 tenth for both the year-ahead outlook, now at 2.7 percent, and the 5-year outlook now at 2.6 percent.
Forecasters see slight deterioration for consumer sentiment calling for a preliminary August reading of 97.5 that would compare with July’s 0.2-point improvement to 98.4.
This was spontaneously cited by 33 percent of the sample and near a prior peak on tariff issues of 37 percent. Another reason for the drop is the Federal Reserve’s rate cut last month, one that the report says is raising apprehensions about a possible recession. Weakness in August’s data is centered in the expectations component, down more than 8 points to 82.3 and reflecting new concerns over income prospects. The current conditions component is down more than 3 points so far this month to 107.4. Inflation expectations remain modest and steady though they did rise by 1 tenth for both the year-ahead outlook, now at 2.7 percent, and the 5-year outlook now at 2.6 percent.
Forecasters see slight deterioration for consumer sentiment calling for a preliminary August reading of 97.5 that would compare with July’s 0.2-point improvement to 98.4.
By Econoday | 16 Aug 2019
RELATED TOPICS:
Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik
Latest /
6 hours ago
Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order
Politics /
6 hours ago
Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools
Economy /
6 hours ago
House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War
Politics /
6 hours ago
Trump Awarded 36 Million More Trump Media Shares Worth $1.8 Billion
Business /
7 hours ago
New Battlegrounds Emerge in California’s Political Guerrilla War Over Housing
Housing /
9 hours ago
Fresno State Shows the Nation How a Peaceful Palestinian Protest is Done
A peaceful pro-Palestinian sit-in at Fresno State on Wednesday lived up to its billing.
“We want a cease-fire, and we just want a free...
Politics /
4 hours ago
Categories
Latest
Videos
Latest /
6 hours ago
Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik
Politics /
6 hours ago
Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order
Economy /
6 hours ago
Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools
Politics /
6 hours ago
House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War
Latest /
1 day ago