NEW YORK, Aug 17 (Reuters) – U.S. consumer sentiment
improved in early August to its highest level in three months as
sales at retailers and low mortgage rates spurred Americans to
boost their buying plans, a survey released on Friday showed.
But concerns about rising food prices caused a jump in both
short- and long-term inflation expectations, the Thomson
Reuters/University of Michigan consumer sentiment survey showed.
The preliminary reading on the index on consumer sentiment
rose to its highest level since May at 73.6 from 72.3 last
month, topping economists’ forecasts for a slight uptick to
72.4.
“Although the growth rate in personal consumption
expenditures can be expected to rebound from the second quarter
lull, growth can be expected to remain just under two percent to
the end of the first quarter of 2013,” survey director Richard
Curtin said in a statement.
Buying plans were bolstered by cheap prices and the measure
of buying conditions for household durables rose to 140 from
130.
The survey’s barometer of current economic conditions
climbed to 87.6 from 82.7, but the survey’s gauge of consumer
expectations slipped to 64.5 from 65.6. Expectations were at
their lowest level since December.
The one-year inflation expectation rose to the highest level
since March at 3.6 percent from 3.0 percent, while the survey’s
five-to-10-year inflation outlook was at 3.0 percent from 2.7
percent.
(Reporting By Leah Schnurr; Editing by Chizu Nomiyama)
