U.S. consumer confidence rose in August, while inflation expectations remained unchanged for next year and beyond, a survey showed on Friday.
The preliminary reading of the University of Michigan’s overall consumer sentiment index was 67.8 points this month, compared with the final reading of 66.4 in July. Economists polled by Reuters had expected a preliminary reading of 66.9 points.
The poll found that among consumers surveyed, confidence in Democrats rose 6 percent after Vice President Kamala Harris replaced President Joe Biden as the Democratic presidential nominee.
For Republicans, sentiment moved in the opposite direction, declining 5 percent in August. The poll showed 41 percent of consumers view Harris as the best candidate for the economy, while 38 percent prefer Republican candidate Donald Trump.
“Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached their highest reading in four months, consistent with the fact that election events can influence future expectations but are unlikely to alter current assessments,” said Joanne Hsu, director of Consumer Surveys.
One-year inflation expectations remained unchanged at 2.9 percent in August from July. Its five-year inflation outlook also remained unchanged at 3 percent.
Earlier this week, an alternative survey from the New York Federal Reserve showed that consumers’ medium-term inflation expectations fell substantially in July, although their short- and long-term outlooks on price pressures remained stable.
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– 2024-08-20 14:08:33
