The final
reading for the August Reuters/Michigan index of consumer sentiment came in at 67.9
compared to the flash reading of 67.8 and the July final reading of 66.4. This
represented the first increase in the indicator in five months.
Economists
had expected the indicator to be revised to 68.0.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions fell by 2.2 per cent m-o-m to 61.3 this
month, while the index of consumer expectations surged by 4.8 per cent m-o-m to
72.1.
The report also
revealed that the year-ahead inflation expectations slipped from 2.9 per cent in July to 2.8 per cent in August,
compared
to the preliminary reading of 2.9 per cent. This marked the lowest reading since December 2020 (2.5 per cent).
Meanwhile,
the 5-year inflation expectations remained unchanged at 3.0 per cent for the fifth straight month, matching the preliminary estimates of 3.0 per cent.
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that consumers’ short- and long-run
economic outlook improved, with both figures reaching their most favourable
levels since April 2024 and a particularly sizable 10% improvement for long-run
expectations that was seen across age and income groups.