Sudden change in confidence reported; inflation is 3.6 percent annual

US consumer confidence in the economy fell in August, but fractionally less than a previous estimate. This was revealed on Friday by final figures from the University of Michigan.

The Consumer Confidence index fell from 81.2 at the end of July to 70.3 at the end of August. A provisional figure indicated another level of 70.2.

Respondents were less positive about the current state of the economy. This sub-index fell from 84.5 to 78.5, compared with 77.9 on a provisional estimate. The expected Index fell from 79.0 to 65.1. An index level of 65.2 was reported in mid-August.

The average American’s income increased in July, while spending also increased, but less sharply than incomes. This was shown on Friday by figures from the US government.

Incomes rose 1.1 percent in July, after a 0.2 percent increase in the previous month. Spending increased by 0.3% in July, after a plus of 1.1% in June.

The PCE core price index rose on a monthly basis 0.3 percent in July, after a plus of 0.5 percent in June. On an annual basis, the index was 3.6 percent higher, compared to an increase of 3.6 percent in June.