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U.S. consumer confidence rose above expectations in August as inflation expectations for the year ahead slowed, suggesting Americans are becoming more optimistic as gasoline prices continue to slide.
The University of Michigan sentiment index rose to 58.2 from 51.5 in July, the highest level since May, according to data released on Friday. Consumers expect prices to increase at an annual rate of 2.9% over the next five to ten years, unchanged from last month. He estimates costs will rise 4.8% next year, compared with a July forecast of 5.2%.
“Increased confidence was observed across age, education, income, region and political affiliation, which can be attributed to the recent slowdown in inflation,” Jonsou, the survey director, said in a statement.
Americans are battling the fastest inflation in a generation, outpacing wage growth and pushing up borrowing costs. While falling natural gas prices provided some short-term relief, food and rental prices remained high.Outlining the excruciatingly high cost of living.
The Present Situation Index hit a three-month high of 58.6. An indicator of expectations recorded a monthly revision since 2003, reaching its highest level since April. In addition, personal finance expectations rose 12% from the previous month.
Earlier Friday, a report showed that U.S. inflation-adjusted spending rose gradually in July, even as a key measure of inflation fell, suggesting the economy continued to feel lower prices.
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