Consumer Sentiment Moves Higher

Consumer sentiment is moving higher so far this month, to 100.8 from 96.2 in July and the strongest showing since March this year and after that the strongest since 2004.

The gain is led by the assessment of current conditions which is up nearly 6 points to 116.1 in a gain that hints at a jump higher for September consumer spending. Expectations are also a positive, up more than 4 points to 100.8 and a new 15-year high in a showing that points to confidence in the outlook for jobs and also the stock market.

All major socio-economic subgroups are showing strength this month though concerns about tariffs are on the rise, mentioned by 1/3 of all respondents vs 1/5 in prior months.

And especially important readings for the Federal Reserve are inflation expectations which are on the downturn, falling 2 tenths for both the year-ahead and 5-year outlooks, to 2.8 and 2.4 percent respectively. These results echo yesterday's subdued readings on consumer prices and won't be raising urgency for what nevertheless is an expected FOMC rate-hike at month end.