The August consumer confidence index fell -7.5% to 105.0 : after a downward revision to July. The decline was expected given the injuries to the equity markets as lower gasoline prices presumably provided some offset.
The labor differential (jobs “plentiful” less “hard to get”) fell to a strong 7.8 as 1 year inflation expectations held at 5.1%, more than twice the annual growth in CPI.
The confidence index is volatile as the decline follows a 7% rise in July. The mood after absorbing the data appears to be affecting equities more than bonds with the Dow off 86 points in early morning trading. Mortgages appear to be in a bright mood this morning with FNMA MBS up 3 ticks (3/32) so far. Yesterday say a slow but persistent rally to the closing bell.
Tags: Consumer Confidence Index, Consumer Price Index, Todays Economy
