CHART OF THE DAY: The Stunning Setback In Consumer Sentiment

button more charts
button chart prev
button chart next

The collapse in Europe, fears of default, weakening US data, the stock market dive… it all adds up to what Doug Short describes as a “stunning setback” for the University of Michigan Consumer Sentiment survey.

As the chart below shows, the reading has now hit a level not seen since early 2008.

Meanwhile, as we noted, there’s a pretty big gap growing between the sentiment (surveys, markets, etc.) and the data which just hasn’t collapsed by that much. Ominously this will need to be resolved one way or another.

chart of the day, consumer sentiment index, aug 2011

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.