High Energy Prices Taking Toll on Sentiment

- Final Univ. of Mich. Consumer Confidence for August fell to 89.1 versus estimates of 92.5 and a prior estimate of 92.7.

BOTTOM LINE: US consumer confidence fell for the first time in three months in August as Americans paid record prices at the gas pump, Bloomberg reported. The average retail price of a gallon of regular gas increased to $2.61 this week. The current conditions component of the index, which measures whether or not consumers feel it’s a good time to buy big-ticket items, fell to 108.2 from 113.5 in July. The expectations component of the index fell to 76.9 from 85.5 the prior month. I continue to believe consumer sentiment will make new cycle highs over the coming months.