U.S. consumer sentiment came in lower in August, missing expectations, according to a report released on Friday.
The Thomson Reuters/University of Michigan's final August reading on the index was 91.9. That was lower than the previous month's reading of 93.1 and Reuters' estimates for 93.
"Overall, the data suggest that real personal consumption expenditures will expand by a still healthy 2.9% in 2015, with the pace of growth rising to 3.0% in 2016. Needless to say, consumer sentiment must be carefully monitored in the months ahead," said Surveys of Consumers Chief Economist Richard Curtin in a statement.
The statement continued: "How will consumers react to volatile stock prices? The Black Mondays of October 17, 1987 and August 24, 2015 represent two episodes when the stock market declined mainly due to reasons other than the domestic economy. Prior to each stock decline, the Sentiment Index was very positive, but immediately following, it fell by about 10%. Consumers quickly dismissed the 1987 episode since it didn't involve their jobs or incomes, and today's consumers hold similar favorable views about their job and income prospects. While this preliminary reading must be confirmed by additional data, there is every reason to expect continued growth."