US consumer sentiment improves less than expected

Consumer sentiment in the US improved less than expected in August, according to data released on Friday.

The University of Michigan’s preliminary reading of the consumer sentiment index nudged up to 90.4 from 90.0 in July, missing expectations of a jump to 91.5 and below last August’s 91.9.

Meanwhile, the current economic conditions index fell to 106.1 from 109.0 the month before, but was up on August last year’s reading of 105.1.

Finally, the index of consumer expectations pushed up to 80.3 in August from 77.8 in July, but was down from 83.4 the same month last year.

Surveys of Consumers chief economist Richard Curtin said: “Confidence inched upward in early August due to more favourable prospects for the overall economy offsetting a small pullback in personal finances.

“Most of the weakness in personal finances was among younger households who cited higher expenses than anticipated as well as somewhat smaller expected income gains. Concerns about Brexit have faded amid rising references to the outcome of the presidential election as a source of uncertainty about future economic prospects.”