Consumer Sentiment: Mostly Steady

Bottom Line: As expected, the University of Michigan's consumer sentiment edged slightly lower in early August. The index of current conditions edged slightly higher, but future expectations were modestly lower. While year-ahead inflation expectations were still above the long-term average range, they fell slightly to 3.3%. Consumer sentiment continues to improve modestly but remains well below historical averages. That said, the current level of sentiment is consistent with modestly positive consumer spending growth in the 2nd Half.