The University of Michigan index gained 1.6 points to 74.1 points, higher than analysts’ expectations of 72.8 points.
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Consumer confidence in the United States improved in August, with households showing a little more optimism for the coming year, according to the final estimate of the University of Michigan survey released on Friday.
The index gained 1.6 points to 74.1 points, higher than the expectations of analysts who expected 72.8 points.
The gain recorded in August is “insignificant”, however, estimated Richard Curtin, the chief economist responsible for this bi-monthly survey.
It reflects “less concerns about the economic outlook for the coming year, even if these prospects remain half as favorable as six months ago”, that is to say before the pandemic, has t -he adds.
The component measuring the perception of the economic situation in the coming months gained 2.6 points to reach 68.5 points.
That measuring the perception of current conditions remained almost unchanged (82.9 against 82.8 points in July).
Although half of those questioned anticipate an improvement in the economy, they are 62% to describe the general conditions of the economy as “unfavorable”, further explained the economist.
Moreover, he comments, while large increases in consumer spending are expected to be recorded after the second quarter low, “these gains will slow significantly by the end of the year without additional budget spending programs to reduce difficulties faced by the unemployed and small businesses as well as in supporting states and local communities ”.
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