US consumer sentiment stagnated in early September, according to a survey released today.
The University of Michigan's index of consumer confidence crawled lower to a preliminary reading of 95.8 from 95.9 in August, according to sources who saw the subscription-only report. Analysts had looked for a rise to 96.5.
Financial markets reacted only modestly to the data, with bond prices dipping and stocks climbing, although the latter was mostly due to a positive outlook from Ford Motor Company.
US economic growth weakened in the second quarter and forecasters are trying to figure out whether that softness was transitory or the start of a longer-term trend.
The answer to that question will determine the pace at which the Federal Reserve is likely to raise interest rates, with widespread implications for consumers and businesses.
Analysts sometimes use sentiment gauges as proxies for future spending patterns, although the past few years have seen scant correlation between fluctuations in confidence indexes and actual retail sales.
The University of Michigan's current conditions component slipped to 105.8 from 107.9 while the expectations index edged up to 89.4 from 88.2.