Mubasher: Initial data released by the University of Michigan indicated that the US consumer confidence slipped in early August to its lowest level since last September.

The consumer sentiment index dropped to 95.3 points in the first half of August, from the final reading of 97.9 in July, a survey report by Michigan University said on Friday.

This came well below MarketWatch analysts’s expectations of 98.5.

“The decline concentrated among households in the bottom third of the income distribution,” survey chief economist Richard Curtin commented, while survey respondents remained concerned over hiking prices.

“Buying conditions for large household durables sank to the lowest level in nearly four years,” while “vehicle buying conditions were viewed less favorably in August than anytime in the last four years,” Curtin said, adding that home prices were viewed less favourably than anytime since 2006.

As for current economic conditions, the index dived 5.8% to 107.8 points month-on-month in August, with a fall of 2.8% from the reading for the same month last year.

However, the expectation index almost stabilised at 87.3 points from previous month, but inching down 0.5% year-on-year.