16:00 - The University of Michigan Consumer Sentiment Index for September
- Current conditions: 61.2 (forecast 61.3; previous 61.7)
- Expectations: 55.9 (forecast 57.5; previous 57.2)
- 1-year inflation: 4.8% (forecast 4.8%; previous 4.8%)
- 5-year inflation: 3.9% (forecast 3.4%; previous 3.5%)
The University of Michigan Consumer Sentiment Index for August was 55.4 points – slightly below expectations and the previous reading. The assessment of the current situation almost matched the forecast but was lower than the previous month. Meanwhile, the expectations component fell significantly below both the forecast and the previous level. One-year inflation expectations remained unchanged, but five-year expectations rose above forecasts, which may raise concerns about the persistence of price pressures.
Weaker than expected consumer sentiment and a poorer expectations component may signal caution in spending and the risk of weaker demand in the economy. At the same time, higher long-term inflation expectations may support the Federal Reserve's hawkish tone and limit hopes for quick interest rate cuts, which could be neutral to negative for the stock market while supporting the dollar and bond yields. Overall signals for the market are mixed.
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