US consumer sentiment rebounds from 8-month low

By Ovunc Kutlu

ISTANBUL (AA) - US consumer sentiment rose in August to rebound from its lowest level in eight months, according to preliminary results from the University of Michigan's consumer survey released Friday.

The index of consumer sentiment climbed 1.4 points to 67.8 in August, from 66.4 in July. The market expectation for the index was to come in at 66.7.

The figure, in addition, marked its first increase in five months.

"With election developments dominating headlines this month, sentiment for Democrats climbed 6% in the wake of Harris replacing Biden as the Democratic nominee for president. For Republicans, sentiment moved in the opposite direction, falling 5% this month," Surveys of Consumers Director Joanne Hsu said in a statement. "Sentiment of Independents, who remain in the middle, rose 3%."

"The survey shows that 41% of consumers believe that Harris is the better candidate for the economy, while 38% chose Trump," she added. "Some consumers note that if their election expectations do not come to pass, their expected trajectory of the economy would be entirely different."

Year-ahead inflation expectations, on the other hand, remained unchanged at 2.9% in August for the second straight month.

Long-run inflation expectations, meanwhile, slightly fell to 3% this month, down from 3.1% in July, according to the survey.