U.S. consumer sentiment rose in early August for the first time in five months as consumers raised expectations on their finances and on subsiding inflation.
The University of Michigan sentiment index climbed to 67.8 from 66.4 in July, according to the preliminary August reading. The median estimate in a Bloomberg survey of economists called for 66.9. The consumer expectations index rose to a four-month high of 72.1 in August. Consumers expect prices will climb at an annual rate of 2.9% over the next year, unchanged from expectations in July. They see costs rising at a 3% rate over the next five to 10 years.
It’s a good thing that consumers remain optimistic.The report showed a measure of buying plans for durable goods slipped to the lowest level since the end of 2022.
More fodder here for the current Wall Street consensus looking for a soft landing for the economy.
