U.S. consumer confidence index likely to have remained elevated in August – Wells Fargo

U.S. consumer sentiment index is likely to have dropped a bit, but stayed elevated in August. In the prior month, consumer confidence had risen 0.3 points, while June’s drop was downwardly revised that initially reported. Consumers usually continue to stay positive regarding the current economic conditions.

The present situation index had risen 4.2 points in the prior month, recording a new cycle high of 165.9. Nevertheless, consumers are growing slightly more concerned regarding future economic conditions. All of the drag came from the future expectations component in July, which , falling 2.3 points, marks the second consecutive fall and fourth drop in the past five months, noted Wells Fargo in a research report.

The growing divide between consumers’ assessment of current economic conditions and their expectations of the future partially reflects uncertainty surrounding the ongoing trade negotiations and disputes.

“Despite these uncertainties, we expect consumer confidence to remain elevated in August, although we anticipate the divide between present and future conditions to continue to widen as this economic cycle ages”, added Wells Fargo.

At 15:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -129.87. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex