U.S. consumer confidence falls in August from six-year high
U.S. consumer confidence dipped in August from a six-year high hit last month as interest rates moved higher, according to a consumer sentiment index released Friday.
The preliminary reading of the consumer sentiment in the first half of August edged down to 80 from 85.1 in July, the highest since July 2007, according to the monthly Thomson Reuters/University of Michigan index.
The sub-index of current economic conditions, which reflects Americans’ perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like houses or cars, edged down to 91 in August from a six-year high of 98.6 in July.
The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, dipped to 72.9 in August from 76.5
The US economy has shown no signs of life since the end of 2007. Except for statistical manipulation, unemployment has not improved, there are no jobs, no housing starts. The only house purchases have been the 5 or 6 billion dollars spent by Goldman Sachs, Blackstone and others, to buy up repossessed homes to rent out.
How can “96% of Americans” think this is a good time to buy a home or a car, when 96% of Americans don’t have a job? And overall consumer sentiment is over 80%? It hardly ever hits 80% in boom times. Surely this is some kind of joke.
Prof. Long Xinming, founder and editor of the bearcanada.com, is one of the frequent contributors for The 4th Media.