US consumer confidence slipped in August as fears resurfaced over the effectiveness of federal Government policy, according to a new survey. Investor's Business Daily and TechnoMetrica Market Intelligence said their monthly economic optimism index slipped to 54.8 in August from 56.2 the prior month, after holding steady for four months. The most significant drop occurred in the federal policy component, a measure of consumers' views on the effectiveness of Government policies, which fell to 49.1, the lowest since February 2001, from 52.7 in July.
"The boost we got last month from a tax cut is wearing off," said Raghavan Mayur, president of TIPP, the polling unit of TechnoMetrica. The personal financial outlook, which gauges how respondents feel about their personal finances in the next six months, eased back to 60.1 from 61.0. However, the economic outlook index, which measures how consumers feel about the economy's prospects six months from now, rose modestly to 55.3 from 54.7 in July, suggesting hopes for a recovery. //www.fxcentre.com