Washington, August 17 (FFN) – U.S. consumer confidence saw a notable increase in August 2024, surpassing analysts’ expectations, while inflation expectations remained unchanged, according to preliminary results from the University of Michigan’s survey released on Friday. The news was reported by FFN, based on information from Reuters and RTTNews.
The University of Michigan’s preliminary estimate showed that the consumer sentiment index rose to 67.8 in August, up from 66.4 in July. Economists had predicted a smaller increase to 66.9.
This marks the first rise in the index in five months, although it remains 2.3% lower year-over-year compared to August 2023.
The boost in consumer confidence was driven by improved expectations for personal finances and the five-year economic outlook, which reached its highest level in four months. However, the assessment of the current economic situation worsened.
Specifically, the subindex of current economic conditions fell to 60.9 in August from 62.7 in July. Meanwhile, the index of consumer expectations increased to 72.1 from 68.8 in July.
At the same time, both one-year and five-year inflation expectations remained stable, with the one-year outlook at 2.9% and the five-year outlook at 3%.
The survey also revealed a significant shift in sentiment among consumers based on political affiliation. Confidence among Democrats increased by 6% after Vice President Kamala Harris replaced President Joe Biden as the Democratic candidate for the November presidential election. On the other hand, confidence among Republicans fell by 5% in August.
Furthermore, 41% of consumers surveyed believe Harris is a better candidate for the economy, while 38% would prefer Republican candidate Donald Trump.
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