Consumer Confidence Dips, Expect Rebound Next Month

- Consumer Confidence for August fell to 99.6 versus estimates of 102.7 and an upwardly revised reading of 107.0 in July.

BOTTOM LINE: Confidence among US consumers fell in August on worries over a slowing housing market and job prospects, Bloomberg reported. The Conference Board surveys 5,000 households by the middle of the month. The survey was completed prior to the recent fall in oil and gas prices. Optimism about consumers’ present situation fell to 123.4 versus 134.2. The share of people expecting better employment opportunities in the next six months fell to 14% versus 14.3% the prior month. Since the middle of August, the average national gas price has declined .16 to $2.81/gallon, the Nasdaq is up 4% and the average 30-year mortgage rate has fallen another 7 basis points. Finally, the Middle East cease-fire didn't go into effect until the 14th of August, which has taken war off the front pages. I expect confidence to rebound next month.