HVAC buying indicator dips in August, survey finds

The share of U.S. consumers who felt it was a good time to buy large household durables — an indicator of HVAC purchasing intent — fell slightly in August, according to data released Friday. 

What’s happening: In the University of Michigan’s popular consumer survey, when asked whether now is a good or bad time to buy ‘major household items,’ 39 percent of respondents — across all ages and income levels — in August said it was a good time, down from 44 percent in July. 

• Meanwhile, the share of respondents who felt it was a bad time to buy during the month rose from 53 percent in July to 59 percent. The remaining two percent of consumers said they were uncertain. 

The big picture: August marked the first drop in good-time responses since May, with the figure also remaining below January’s level, when 51 percent of consumers felt it was a good time to buy major household items. 

Zoom out: Along with purchasing sentiment, Friday’s release included a final reading on overall consumer sentiment for September, which fell to a four-month low — though it remains above April and May’s readings. 

• The catch: “[S]entiment for consumers with larger stock holdings held steady in September, while for those with smaller or no holdings, sentiment decreased,” wrote Joanne Hsu, the university’s survey director. 

What they’re saying: “Nationally, not only did macroeconomic expectations fall, particularly for labor markets and business conditions, but personal expectations did as well, with a softening outlook for their own incomes and personal finances,” she added. 

• “Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year.”