Investing.com – U.S. consumer sentiment improved more than expected in August, bolstering optimism over the American economy, according to a report published on Friday.
The preliminary publication of the data for August from the University of Michigan's Consumer Survey Center showed that consumer sentiment advanced to 97.6 from 93.4 in the previous month.
That was its highest reading since January and analysts had forecast the reading to rise to just 94.0.
The current conditions indicator dropped to 111.0 in August, from the previous 113.4.
Consensus was looking for the reading to slip to 113.3 from July’s level.
Additionally, consumer expectations increased to 89.0 in August, from the prior reading of 80.5.
Economists had expected the indicator to inch up to 81.0.
Meanwhile, inflation expectations for the next 12 months held steady at 2.6%, while the five-year gauge decreased to 2.5%, from the prior 2.6%.
“Consumer confidence rose in the first half of August to its highest level since January due to a more positive outlook for the overall economy as well as more favorable personal financial prospects,” the report indicated.
Chief economist Richard Curtin noted that index components had nearly regained 2017 peaks, but he remained cautious.
“Too few interviews were conducted following Charlottesville to assess how much it will weaken consumers' economic assessments,” he explained.
“The fallout is likely to reverse the improvement in economic expectations recorded across all political affiliations in early August,” Curtin predicted.
After the report, EUR/USD was trading at 1.1743 from around 1.1738 ahead of the release of the data, GBP/USD was at 1.2871, compared to 1.2883 previously, while USD/JPY was at 108.76 from 108.79 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.37 compared to 93.40 before the report.
Meanwhile, U.S. stocks traded lower after the open. The Dow Jones lost 35 points, or 0.16%, the S&P 500 fell 3 points, or 0.14%, while the tech-heavy Nasdaq Composite traded down 7 points, or 0.11%.
Elsewhere, in the commodities market, gold futures traded at $1,301.11 a troy ounce, compared to $1,302.11 ahead of the data, while crude oil traded at $46.94, compared to $46.91 prior to the release.