2010.08.2711:24:00UTC+00August Consumer Sentiment Index Unexpectedly Revised Downward

While Thomson Reuters and the University of Michigan released a report on Friday showing that consumer sentiment in August improved compared to the previous month, the consumer sentiment index for the month was unexpectedly revised downward.

The report showed that the consumer sentiment index for August was downwardly revised to 68.9 from the previous estimate of 69.6, although it remains above the July reading of 67.8. The downward revision surprised economists, who had expected the index to be revised up to a reading of 70.0.

Reflecting expectations for lackluster income and job growth, the expectations index for August was downwardly revised to a reading of 62.9 from the previously reported 64.1. Nonetheless, the index is still modestly higher than the July reading of 62.3.

Meanwhile, the current conditions index for August was unrevised at a reading of 78.3, up from the July reading of 76.5.

Richard Curtin, the consumer surveys chief economist, said, "It is far too early to declare that consumer pessimism has become the new default outlook of consumers."

"Nonetheless, the economic uncertainty that now exists has caused consumers to reduce their spending and increase their precautionary saving," he added.

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