Consumer Confidence in the U.S. Falls to Its Lowest Level in 7 Months

WHAT HAPPENED

Consumer confidence in the U.S. fell from 90.2 to 89.4 points in August, its lowest level since January. The view of the present improved, but the future outlook dropped to 68.2, below 80.

WHY IT MATTERS

Gasoline is around $4.10 per gallon and families expect inflation of 5.8%: something that costs $100 would be nearly $106 in a year. The fear may curb spending on cars, appliances, renovations, travel, and retail sales.

AND FOR YOUR PORTFOLIO

For a long-term investor, the data does not prove that the economy is already bad: it shows a warning about future household spending. Companies more exposed to non-essential purchases could feel it sooner. In the pocket, high gasoline and prices reduce available money.