Time: 2024-08-23
consumer sentiment in the United States proverb a rebuff boost this calendar_month , with the University of Michigan 's Consumer Sentiment Index rise to 67.8 in August from 66.4 in July . The addition was largely drive by a rush in optimism among Democrats see Vice President Kamala Harris . harmonize to the survey , the liquor of Democrats and political mugwump rose , while Republicans sentiment hide . In fact , 41 % of consumer see Harris the better campaigner for the economy , compare to 38 % who choose Republican campaigner Donald Trump . The index is expect to fluctuate with change poll consequence as the election approach , bespeak that consumer ' economic mentality is heavily influence by political factors.
The Michigan Consumer Sentiment Index has bounce from a low of 50 in June 2022 , which coincide with a four - decade high in inflation . Despite the recoil , consumer sentiment remains below healthy degree . The survey uncover that consumer are still refer about rise monetary_value , with many blame President Biden for higher inflation rates . However , Americans have continue to spend , drive economic growth and offset the impact of inflation . The Federal Reserve react to inflation by elevation its benchmark interest rate 11 times in 2022 and 2023 , with expectation of rate cut in the future . consumer ' expectation for future inflation have moderate , but they stay thwart that monetary_value are still nearly 20 % higher than pre - inflation levels.
The August Michigan Consumer Sentiment Index Marks the first addition in five calendar_month , signal relief from high inflation for consumer . Holocene report propose that inflation is deceleration down , delivery annual monetary_value addition closer to the Federal Reserve 's target of 2 % . consumer are feeling better about the economic mentality , although their appraisal of current conditions has deteriorate . expectation for personal funds and the five - year economic mentality have strengthen , reach the high reading in four calendar_month . The Federal Open Market Committee has keep interest rates high to combat inflation , but Holocene attempt to bring inflation back to target degree have hike consumer optimism.
Overall , the rise in consumer sentiment reflect a complex interplay between political dynamics , economic conditions , and inflationary pressure . As consumer voyage a change economic landscape , their expectation and spending behavior will continue to influence the wide economic outlook.
Business
