US consumers are growing more sceptical that the good economic news can be sustained, University of Michigan researchers said today. The consumer sentiment index fell to 87.7 in September from 89.3 in August and the 88.2 preliminary September reading. Economists were expecting the index to strengthen to about 88.4. The report added to early morning volatility in the stock and bond markets. The current conditions index fell to 98.4 in September from 99.7 in August and 98.9 in early September. The expectations index fell to 80.8 from 82.5 in August and 81.3 in early September. The expectations index is one of 10 components in the Conference Board's index of leading economic indicators.
Despite weak consumer sentiment readings, consumer spending accelerated during the summer, fuelled by a tax rebate, lower tax withholding, and falling prices for many goods. In the survey, however, consumers have become increasingly nervous about weak job growth, slow income gains and higher gas prices. //www.fxcentre.com