Investing.com - A key gauge of U.S. consumer confidence was revised higher in August, according to a survey released on Friday.
The University of Michigan's consumer confidence index was revised up to 96.2 from 95.3.
Economists had forecast a reading of 95.5.
A sub index tracking consumer expectations unexpectedly fell from 87.3 to 87.1 in August.
Consensus expected a slight increase to 87.5.
A separate gauge tracking current conditions increased from 107.8 to 110.3.
Economists had estimated a reading of 108.1.
Meanwhile, inflation expectations for the next 12 months ticked up to 3%, while the five-year gauge rose to 2.6% from the previous 2.5%.
Despite the uptick in the revised data, the survey center’s chief economist Richard Curtin highlighted that consumer sentiment remained at its lowest level since January.
He noted that most of the August decline was in the Current Economic Conditions Index, which fell to its lowest level since November 2016.
“These results stand in sharp contrast to the recent very favorable report on growth in the national economy,” Curtin said.
“While nominal wage expectations and employment gains have remained strong, the anticipated inflation rate has also increased to its highest level in four years,” he added.
He suggested that the increase in inflation expectations was partly due to the potential for increased tariffs, but insisted that the main cause was the expectation of robust economic growth.
“Luckily, consumers have not yet judged the current rate of inflation as a significant source of erosion in their living standards or as a cause to reduce their buying plans,” Curtin said.