|
The
University of Michigan's preliminary reading on the overall
index of consumer sentiment came in at 67.8 this month, compared
to a final reading of 66.4 in July. Economists polled by Reuters
had forecast a preliminary reading of 66.9.
In terms of the Nov. 5 U.S. presidential election, the survey
noted that sentiment for those who identified as Democrats
jumped 6% in the wake of President Joe Biden's decision to drop
out of the race and Vice President Kamala Harris' emergence as
the party's presidential nominee, the first rise since March.
For Republicans, sentiment declined 5% in August to the lowest
level since last November. Sentiment among those who
self-identified as independent voters, whose views of the
economy so far this year have more closely aligned with the sour
view of Republicans, rose 3%, the first increase since January.
The survey, the first conducted outside the period when Biden
withdrew from the race on July 21, also showed 41% of consumers
viewed Harris as the better candidate for the economy, while 38%
chose Republican nominee Donald Trump. Between May and July,
Trump held a five-point advantage over Biden on the economy.
"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," Joanne Hsu, the director of the
University of Michigan's Surveys of Consumers, said in a
statement.
The survey's reading of one-year inflation expectations was
unchanged at 2.9% in August, matching the reading in July. Its
five-year inflation outlook remained at 3.0% for the fifth
straight month.
Earlier this week, an alternative sentiment survey run by the
New York Federal Reserve showed medium-term inflation
expectations eased substantially among consumers in July, even
as their near- and longer-term outlooks for price pressures held
steady.
(Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama and
Paul Simao)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
