US Consumer Sentiment at 7-Month High

The University of Michigan's consumer sentiment for the United States rose to 97.6 in August of 2017 from 93.4 in July, beating market estimates of 94, preliminary estimates showed. It is the strongest reading since January, due to a more positive outlook for the overall economy and more favorable personal financial prospects.

The gauge of future expectations jumped to 89 from 80.5 in July while the barometer for current economic conditions fell to 111 from 113.4.

Americans expect the inflation rate to be 2.6 percent next year, the same as in July. The 5-year expectation edged lower to 2.5 percent from 2.6 percent. 

However, it is important to mention that too few interviews were conducted following Charlottesville to assess how much it will weaken consumers' economic assessments. The fallout is likely to reverse the improvement in economic expectations recorded across all political affiliations in early August. Moreover, the Charlottesville aftermath is more likely to weaken the economic expectations of Republicans, since prospects for Trump's economic policy agenda have diminished. Nonetheless, the partisan difference between the optimism of Republicans and the pessimism of Democrats is still likely to persist, with Independents remaining as the bellwether group. 

US Consumer Sentiment at 7-Month High

University of Michigan | Joana Taborda |
8/18/2017 2:09:18 PM