Current Economic Conditions declined from 62.7 in July to 60.9 in August, while Index of Consumer Expectations increased from 68.8 to 72.1.
Year-ahead inflation expectations remained unchanged at 2.9%. In the two year prior to the pandemic, year-ahead inflation expectations ranged between 2.3% and 3.0%. Long-run inflation expectations have also remained unchanged at 3.0%.
The University of Michigan commented: “Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached its highest reading in four months, consistent with the fact that election developments can influence future expectations but are unlikely to alter current assessments.”
U.S. Dollar Index moved away from session lows as traders reacted to the better-than-expected Michigan Consumer Sentiment report. Currently, U.S. Dollar Index is trying to settle above the 102.75 level.