[News] U.S. Consumer Sentiment Slightly Rises in August, as Democrats Show Confidence on Harris’ Nomination

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The University of Michigan released its Consumer Sentiment Index on August 16th, showing a preliminary reading of 67.8 for August, up slightly by 1.4 points from 66.4 in the previous month. The report indicates that with Kamala Harris replacing Joe Biden as the Democratic presidential nominee, confidence among Democratic supporters rose by 6%, while confidence among Republican supporters fell by 5%.

Regarding future economic developments, 41% of consumers believe that Harris would better support economic growth, while 38% favor Trump. Before Biden’s withdrawal, Trump had a 5-point lead over Biden in terms of economic development.

Overall, the dynamics of the presidential election seem to have a certain impact on consumers’ future expectations, as their outlook for personal finances and the economy over the next five years has reached its highest level in nearly four months.

Despite the increasing focus on the U.S. election, inflation remains the most important issue for consumers. One-year inflation expectations remain at 2.9%, unchanged from the previous month, and within the pre-pandemic range of 2.3% to 3.0%. Long-term inflation expectations have also remained steady at 3.0% for the past five months, slightly above the pre-pandemic range of 2.2% to 2.6%.