After reporting a surge in U.S. consumer sentiment in the previous month, the University of Michigan released preliminary data on Friday showing a slight pullback in consumer sentiment in the month of August.<\/p>\n
The report said the consumer sentiment index edged down to 71.2 in August after spiking to 71.6 in July. Economists had expected the index to slip to 71.0.<\/p>\n
The consumer sentiment index reading for July marked the highest since the index was at 72.8 in September 2021.<\/p>\n
“Consumer sentiment was essentially unchanged from July, with small offsetting increases and decreases within the index,” said Surveys of Consumers Director Joanne Hsu.<\/p>\n
The modest decrease by the headline index came as the index of consumer expectations dipped to 67.3 in August from 68.3 in July.<\/p>\n
Meanwhile, the current economic conditions index rose to 77.4 in August from 76.6 in July, reaching the highest level since October 2021.<\/p>\n
“At 71.2 index points, sentiment is now about 42% above the all-time historic low reached in June of 2022 and is approaching the historical average reading of 86,” said Hsu.<\/p>\n
She added, “In general, consumers perceived few material differences in the economic environment from last month, but they saw substantial improvements relative to just three months ago.”<\/p>\n
The report also said year-ahead inflation expectations edged down to 3.3 percent in August from 3.4 percent in July.<\/p>\n
Long-run inflation expectations also slipped to 2.9 percent in August from 3.0 percent in July, staying within the narrow 2.9-3.1 percent range for 24 of the last 25 months. <\/p>\n