Consumer confidence in the United States rose less than forecast in August, reflecting a pullback in views on personal finances among younger Americans.
The University of Michigan’s preliminary index of sentiment climbed to 90.4 from a three-month low of 90 in July, according to an Aug. 12 report. The median projection in a Bloomberg survey called for a reading of 91.5, with estimates ranging from 89 to 93.1.
Payrolls have shown strong gains for two months and wage increases are slowly accelerating, giving consumers more confidence and power to spend. At the same time, uncertainty over the outcome of the presidential election could hold back the household demand that’s supported economic growth this year amid weak investment by companies.
Increasing uncertainty about the economy following the election “probably reflects each candidate’s focus on the negative economic outcomes if the other candidate is elected,” Richard Curtin, director of the survey, said in a statement.
A report from the Commerce Department on Aug. 12 showed that sales at U.S. retailers were little changed in July, missing forecasts for an increase, as Americans flocked to auto dealers at the expense of other merchants.
The University of Michigan's current conditions index, which is an assessment of the state of personal finances, declined to a five-month low of 106.1 from 109 in July. A gauge of expectations for the next six months rebounded to 80.3 from 77.8 last month.
