The final reading for the August Reuters/Michigan index of consumer sentiment came in at 70.3 compared to a preliminary reading of 70.2 and the July final reading of 81.2. This was the lowest reading since December 2011.

Economists had forecast the index to be revised to 70.7.

According to the report, the index of consumer expectations tumbled 17.6 percent m-o-m to 65.1 from July’s final reading of 79.0, while the index of the current economic conditions declined 7.1 percent m-o-m to 78.5 from July’s final reading of 84.5.

“There was no lessening in late August in the extent of the collapse in consumer sentiment recorded in the first half of the month. The Consumer Sentiment Index fell by 13.4% from July, recording the least favorable economic prospects in more than a decade,” noted Richard Curtin, Surveys of Consumers chief economist. “Consumers' extreme reactions were due to the surging Delta variant, higher inflation, slower wage growth, and smaller declines in unemployment.”