Consumer Sentiment Rose 7.0% in Early August
Ann Arbor, MI, August 12, 2022-Consumer sentiment rose 7.0% to 55.1, according to preliminary results from the University of Michigan Survey of Consumers.
This represents a 21.6% decline year over year.
“Consumer sentiment moved up very slightly this month to about 5 index points above the all-time low reached in June,” says Survey of Consumers director Joanne Hsu. “All components of the expectations index improved this month, particularly among low and middle income consumers for whom inflation is particularly salient. The year-ahead economic outlook rose substantially to just above its average reading from the second quarter 2022, while the two other expectations index components remain at or below their second quarter averages. At the same time, high income consumers, who generate a disproportionate share of spending, registered large declines in both their current personal finances as well as buying conditions for durables. With continued declines in energy prices, the median expected year-ahead inflation rate fell to 5.0%, its lowest reading since February but still well above the 4.6% reading from a year ago. At 3.0%, median long run inflation expectations remained within the 2.9-3.1% range seen over the past year. Uncertainty over long run inflation receded a bit, with the interquartile range in expectations falling from 4.7 last month to 3.8 this month, remaining above the 3.3 range seen last August. Still, the share of consumers blaming inflation for eroding their living standards remained near 48%.”