by Bill McBride on 8/12/2011 09:55:00 AM
Friday, August 12, 2011
The preliminary August Reuters / University of Michigan consumer sentiment index declined sharply to 54.9 from 63.7 in July.
Click on graph for larger image in graphic gallery.
In general consumer sentiment is a coincident indicator and is usually impacted by employment (and the unemployment rate) and gasoline prices. However I think this month was different. I think consumer sentiment declined sharply because of the heavy coverage of the debt ceiling debate (update: this was polled before the S&P downgrade).
This was well below the consensus forecast of 63.0.