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Consumer Confidence Droops In August: CEA

8/28/2012 11:25:00 AM Eastern

Arlington, Va. — Consumer confidence in the overall economy and technology spending both fell in August, according to the Consumer Electronics (CEA).

The CEA Index of Consumer Expectations (ICE), which measures consumer expectations about the broader economy, fell 4.2 points in August, to 168.7. This is the lowest level since May, the CEA said, but is still almost nine points higher than August 2011.

“Consumer sentiment around the overall economy ebbed lower in August after steady rises over the prior two months,” said Shawn DuBravac, CEA chief economist and research senior director. “The decline in sentiment over the summer months parallels the slide we saw in 2011, though not as sharply.”

Consumer confidence in technology spending also declined in August. The CEA Index of Consumer Technology Expectations (ICTE) fell 0.6 points, to 87.5. The ICTE, which measures consumer expectations about technology spending, remained higher year over year and recorded its highest August level, up by 9.3 points since the CEA Index was introduced in 2007, the CEA said.

“It’s clear consumers remain cautious in their approach to spending as the economic recovery limps forward,” said DuBravac. “However, with the highest technology sentiment levels in August since 2007, the consumer is potentially well positioned as we move closer to the holiday season.”