10:13 AM EDT, 08/30/2024 (MT Newswires) -- The University of Michigan consumer sentiment index was revised slightly upwards on Friday to a reading of 67.9 for August from 67.8 in the preliminary estimate, compared with expectations for a larger upward revision to 68.1 in a survey compiled by Bloomberg as of 7:35 am ET.

That was above the final reading of 66.4 in July.

The current conditions index was revised upwards to 61.3 from a 60.9 preliminary estimate, but was still below the 62.7 reading in July, while the expectations index was unrevised from 72.1 preliminary estimate, above the 68.8 reading in July.

Michigan said that expectations of consumers regarding economy and elections may be change as presidential election day approaches.

Respondents expected a 2.8% inflation rate over the next year, down from 2.9% in July, while their expectation for annual inflation over the next five years remained at 3% for the fifth straight month.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate).

The headline index is a combination of the current assessment and expectations for the near future. An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.