Data released by the University of Michigan on Friday (26th) showed that the consumer confidence index further improved in August, with a final value of 58.2, far exceeding market expectations of 55.1, and the previous value of 51.5, rising to a 3-month high, and with Short-term inflation expectations slowed, suggesting U.S. consumers were more optimistic regarding inflation as gasoline prices fell.
According to data released by the University of Michigan, the final value of the consumer confidence index rose to 58.2 in August from 51.5 in July, the highest since May. In terms of inflation expectations, which are closely watched by the market, consumers estimated that the final value of 5-year inflation expectations was 2.9%, unchanged from the previous month, and the final value of 1-year inflation expectations was 4.8%, which fell to an 8-month low. The final reading for July was 5.2%.
The increase in confidence among respondents across age, education, income, region and political affiliation can be attributed to the recent slowdown in inflation, said Joanne Hsu, director of the University of Michigan’s Consumer Confidence Survey.
Other data show that the University of Michigan’s consumer expectations index in August reported 58.0, better than the expected 54.9, and the previous value of 47.3; the current situation index was reported at 58.6, expected to be 55.5, and the previous value of 58.1; 1-year inflation expectations were reported at 4.8%, the previous value was 5.0% , expected 5.2%.
