Consumer Sentiment Little Changed

Consumer sentiment is little changed so far this month, at 92.9 for the mid-month August reading vs 93.1 for final July. An early indication on August's consumer sector comes with the current conditions component which is nearly unchanged, at 107.1 vs July's 107.2. This hints at steady strength for consumer spending this month. The expectations component, which offers indications on the employment outlook, slipped 3 tenths to a still solid 83.8. Inflation readings are also little changed and have yet to reflect the ongoing price collapse for oil, at 2.8 percent for 1-year expectations, which is unchanged, and 2.7 percent for 5-year expectations which is down 1 tenth. Consumer confidence readings are down from their highs earlier in the year but are still very solid and a reminder that unemployment is low and that the domestic economy is healthy.

Recent History Of This Indicator: After easing in July, consumer sentiment is expected to stabilize in the flash August reading, at 93.5 vs July's 93.1. Weakness in July reflected less optimism on the jobs outlook though readings through the report still remained healthy.