US consumer confidence drops in August | Crypto Craft

  • US consumer confidence drops in August

    From breakingthenews.net

    The Consumer Sentiment Index in the United States slid 5% in August compared to the month prior, to stand at 58.6, a preliminary report posted by the University of Michigan showed on Friday. The figure plunged 13.7% on an annual level. The Current Economic Conditions Index tumbled 10.4% in the reported period compared to July and lost 0.7% compared to August 2024, amounting to 60.9 points. The Index of Consumer Expectations declined 0.9% on a monthly basis, but nosedived 20.7% on a yearly basis, coming in at 57.2. "Year-ahead inflation expectations rose from 4.5% last month to 4.9% this month. This increase was seen ... (full story)

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Eurorally
Aug 15, 2025 12:17pm
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The problem here is that the UoM Inflation Expectations 12 months from now are so meaningless that they should not be used as an economic indicator of anything.

The same is true to a smaller extent for he UoM Consumer Confidence.

The popular explanation is that the consumer knows what is happening in the economy when he/she is at the supermarket checkout counter.

The truth is that this is an economic gobbledygook. The consumer has no way to judge the economy from his/her supermarket bill. Like the customer before me at the checkout counter who was paying $93.00 and said: "This would have cost $50 a year ago." The knowledge of economics and the mathematics of inflation be damned.

They just believe what they are told by the pundits, "experts" and TV talking heads who have frequently other motives, such as to keep the listeners at the edge of their seat as the advertising revenue depends on the number of listeners.

As for the inflation expectations in 12 month: I am an economist and follow economic data every day. If I am asked the same question I would not know the answer because I have no data and I am not clairvoyant. But various "experts" will freely pontificate on this issue not based on any knowledge but solely based on their belief and faith frequently colored by political proclivities and a bias.
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