Michigan Consumer Sentiment Rises To 67.8, Exceeding Analyst Expectations

On August 16, 2024, the University of Michigan released Michigan Consumer Sentiment report for August.

The report indicated that Consumer Sentiment improved from 66.4 in July to 67.8 in June, compared to analyst consensus of 66.9.

Current Economic Conditions declined from 62.7 in July to 60.9 in August, while Index of Consumer Expectations increased from 68.8 to 72.1.

Year-ahead inflation expectations remained unchanged at 2.9%. In the two year prior to the pandemic, year-ahead inflation expectations ranged between 2.3% and 3.0%. Long-run inflation expectations have also remained unchanged at 3.0%.

The University of Michigan commented: “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.”

U.S. Dollar Index moved away from session lows as traders reacted to the better-than-expected Michigan Consumer Sentiment report. Currently, U.S. Dollar Index is trying to settle above the 102.75 level.

Gold  pulled back from session highs as traders focused on the rebound of the U.S. dollar. However, gold has settled close to the psychologically important $2500 level.

SP500 is trying to settle above the 5550 level, supported by the encouraging Consumer Sentiment report. From a big picture point of view, stock traders stay bullish after the strong rebound from August lows.

For a look at all of today’s economic events, check out our economic calendar.