Revised data released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by much more than previously estimated in the month of August.
The report showed the consumer sentiment index for August was upwardly revised to 58.2 from the previously reported 55.1. Economists had expected the index to be upwardly revised to 55.2.
With the much bigger than expected upward revision, the consumer sentiment index is well above the final July reading of 51.5.
The notable upward revision to the headline index came as the index of consumer expectations was upwardly revised to 58.0 from 54.9, while the current economic conditions index was upwardly revised to 58.6 from 55.5.
"The gains in sentiment were seen across age, education, income, region, and political affiliation, and can be attributed to the recent deceleration in inflation," said Surveys of Consumers Director Joanne Hsu.
She added, "Lower-income consumers, who have fewer resources to buffer against inflation, posted particularly large gains on all index components."
The report showed one-year inflation expectations in August were downwardly revised to 4.8 percent from 5.0 percent, coming in further below 5.2 percent in July.
Five-year inflation expectations in August were also downwardly revised to 2.9 percent from 3.0 percent, matching the increase expected in the previous month.
