Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised up from a level of 73.6 to 74.3 during the August revision, its highest level since May, though it is still moderately below its second quarter average of 76.3. The upward revision was largely due to an upward adjustment to respondents’ assessment of the current conditions (up from 87.6 to 88.7), and virtually all the traction in overall sentiment over the past few months is due to gains in this component. Consumer expectations were revised up from 64.5 to 65.1 in August, though that is still slightly below their reading in July of 65.6. Importantly, expectations have decreased in each of the last three months and are down almost 10 points relative to their May reading. Inflation expectations were unrevised during the August revision, but up sharply from June. Median short-run (one-year ahead) inflation expectations jumped up from 3.0 percent in July to 3.6 percent in August, the series’ sharpest increase since a gasoline price induced spike to 3.9 percent in March. And, longer-term (five-years ahead) inflation expectations rose from 2.7 percent to 3.0 percent.