The preliminary reading for the University of Michigan Consumer Sentiment Index for August dropped to 51.0 (consensus: 54.5) from the final reading of 55.2 for July. In the same period a year ago, the index stood at 58.2.
The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.