FXStreet (Guatemala) - James Knightley, analyst at ING Bank NV (ING) noted that the University of Michigan consumer sentiment index for August has surprisingly dropped to 79.2 from 81.8 in July versus expectations of an increase to 82.5.

Key Quotes:

“The weakness was caused by a sharp drop in the expectations component to 66.2 from 71.8, which leaves this component at its lowest level since October”.

“Given the general improvement in activity data and the fact that gasoline prices have fallen, thereby boosting household spending power, we suspect this was a reaction to the recent equity market correction”.

“Indeed, the current conditions component of the confidence index actually rose to 99.6 from 97.4, leaving this index at its highest since July 2007”.
“As such we can clearly say that households are feeling the better economy. With equity markets having stabilised – the S&P500 is up 2.6% from its lows after falling 4% between late July and early August – we look for a recovery in the final reading of this index”.

“Indeed, with the employment and real income story looking in decent shape we remain positive on consumer demand story”.

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!