Consumer confidence down in August

08.31.09
By Lewis Green

A number of recent economic indicators suggest that the economy is getting back on track while at least one analyst has said the recession is over, but that news doesn't appear to be resonating with the American public as a new survey finds that consumer confidence fell in August.

The Reuters/University of Michigan Surveys of Consumers found that its Index of Consumer Sentiment fell to 65.7 in August - down 0.3 points from 66.0 in July and the lowest it has been since April of this year. The number is also down almost 2 points from a year ago when it stood at 67.5.

This lack of consumer confidence appears to be tied to high unemployment figures and low personal incomes. Richard Curtin, director of the surveys, said only 16 percent of those surveyed said their finances had improved last month, which he says is the lowest number in the history of the survey.

"Consumers were more likely to report hearing about positive economic developments in August, and more likely to expect the economy to improve during the year ahead," he said. "Unfortunately, this first ray of optimism was accompanied by the grimmest assessment by consumers of their personal finances since the Great Depression."

However, a report released last week from the Conference Board seems to be at odds with the Reuters/UM survey. In that survey, consumer confidence actually rose in August - rising from 47.4 in July to 54.1 this month. This was the first increase in the index after two straight months of decline.

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Consumers are not confident about the economy