A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment increased 2.1 per cent m-o-m
to 67.8 in early August. This marked the first advance in the index in five
months.
Economists had predicted
the indicator would rise to 66.9 this
month from the July final
reading of 66.4.
According to
the report, the index of current economic conditions declined 2.9 per cent m-o-m to 60.9 in August, while the
index of consumer expectations jumped 4.8 per cent m-o-m to 72.1.
The report also
revealed that the estimates of year-ahead expected inflation held steady at
2.9 per cent early this month. The
5-year expected inflation also demonstrated no change, holding at 3.0 per cent.
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu suggested that consumer
expectations are subject to change as the presidential campaign comes into
greater focus, even as consumers expect that inflation - still their top
concern - will continue stabilizing.