Consumer sentiment dropped to 54.9 from 63.7 in July, according to preliminary University of Michigan/Thomson Reuters index released Friday. Consensus had expected a reading of 61.
The consumer confidence gauge confirms my thesis, discussed here, that depressed investor, consumer and managerial sentiment in August would cause the economic data published in September to be horrible.
Let's take a look at weaker than expected reports from the Eurozone in aggregate, and France and Germany in particular.France The Markit Flash France PMI shows French private sector output falls for seventh successive month. Key points:
To the 'turning around' reports from the Eastern Front ca 1943... err... 2013... per KBC Ireland/ESRI Consumer Sentiment Index, consumer sentiment in Ireland fell in February to 59.4 compared to January reading of blistering 64.2. The report gets 'serious' on dynamics: "The three-month moving average also decreased from 59.3 to 57.8. The index fell below the average for the last 12 months (61.9)."