U.S. Consumer Sentiment Rose in August -- 2nd Update
August 18 2017 - 2:49PM
Dow Jones News
By Josh Zumbrun and Sarah Chaney
U.S. consumer sentiment increased in the first half of August to
its highest level since January, as Americans increasingly placed
their hopes on the economy's future.
Those expectations could soften in later readings, given recent
events including political turmoil in the wake of violence in
Charlottesville, Va., and Thursday's stock market decline.
The University of Michigan on Friday said its preliminary
reading on overall consumer sentiment during August was 97.6, up
from 93.4 in July. Economists surveyed by The Wall Street Journal
had expected an August figure of 94.5.
An index that tracks expectations about the future rose to 89.0
in August from 80.5 in the previous month. An index tracking
confidence in the current economic situation fell to 111.0 from
113.4 in July.
Economic data offer signs that consumption growth could remain
strong in the coming months. Sales at U.S. retailers rose 0.6% in
July, the biggest monthly gain since December, the Commerce
Department said Tuesday.
"With jobless claims continuing to trend lower, gasoline prices
subdued, and the stock market only falling a few percent from its
recent record highs, consumer sentiment is likely to remain buoyant
for the months ahead," said Michael Pearce, U.S. economist at
Capital Economics, in a note to clients.
Still, signs of unease are brewing.
News over the past week has been dominated by reaction to
racially charged protests in Charlottesville, Va. Richard Curtin,
the Michigan survey's chief economist, said too few interviews were
conducted after the protests to gauge how much the events will
affect consumer sentiment.
"The fallout is likely to reverse the improvement in economic
expectations recorded across all political affiliations in early
August, " Mr. Curtin said.
The Dow Jones Industrial Average recorded its biggest drop in
three months Thursday, another potential blow to consumer
sentiment. Stocks extended declines in the aftermath of a terror
attack in Barcelona.
Write to Josh Zumbrun at Josh.Zumbrun@wsj.com and Sarah Chaney
at sarah.chaney@wsj.com
(END) Dow Jones Newswires
August 18, 2017 14:34 ET (18:34 GMT)
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