(RTTNews) - Preliminary data released by the University of Michigan on Friday showed consumer sentiment in the U.S. has improved by more than expected in the month of August.
The University of Michigan said its consumer sentiment index rose to 67.8 in August after falling to 66.4 in July. Economists had expected the index to inch up to 66.9.
The consumer sentiment index regained ground after hitting its lowest level since November 2023 in the previous month.
"With election developments dominating headlines this month, sentiment for Democrats climbed 6% in the wake of Harris replacing Biden as the Democratic nominee for president," said Surveys of Consumers Director Joanne Hsu.
"For Republicans, sentiment moved in the opposite direction, falling 5% this month," she added. "Sentiment of Independents, who remain in the middle, rose 3%."
The report also said the index of consumer expectations climbed to 72.1 in August from 68.8 in July, while the current economic conditions fell to 60.9 in August from 62.7 in July.
"Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached its highest reading in four months, consistent with the fact that election developments can influence future expectations but are unlikely to alter current assessments," said Hsu.
On the inflation front, the report said year-ahead and long-term inflation expectations were both unchanged from the previous month at 2.9 percent and 3.0 percent, respectively.
