Consumer sentiment in the U.S. showed a slight improvement for August, surpassing earlier estimates, as per a report released by the University of Michigan on Friday.
The University of Michigan revised its consumer sentiment index for August to 67.9, up from the preliminary figure of 67.8.
Despite the modest upward revision falling just short of economist expectations pegged at 68.0, the index remains higher than July's reading of 66.4.
"Following a four-month decline, sentiment increased by 1.5 points from July and is now 36% above the historic low recorded in June 2022," stated Joanne Hsu, Director of Surveys of Consumers.
Hsu further noted, "Consumers show improved short- and long-term economic outlooks, with both reaching their most favorable levels since April 2024. Notably, there was a substantial 10% improvement in long-term expectations across various age and income groups."
The report highlighted that the index of consumer expectations rose to 72.1 in August from 68.8 in July, while the current economic conditions index slightly decreased to 61.3 from 62.7 over the same period.
Concerning inflation, year-ahead inflation expectations dipped to 2.8 percent in August from 2.9 percent in July. Long-term inflation expectations remained stable at 3.0 percent.
