The latest University of Michigan’s U.S. consumer sentiment survey revealed that year-ahead inflation expectations remained steady at 2.9% for the 2nd consecutive month in August 2024.

This stability follows a range of 2.3% to 3.0% in the two years preceding the pandemic. Additionally, long-term inflation expectations held firm at 3.0%, consistent with the past 5 months.

The index consumer sentiment rose to 67.8 in Aug. from 66.4 in July, reflecting a 1.4-point gain. However, it is still down 2.1 points from the previous year. Economists polled by Reuters forecasted a preliminary reading of 66.9.

Election developments have influenced sentiment, with a 6% rise among Democrats following Vice President Kamala Harris’s replacement of Joe Biden as the Democratic presidential nominee. In contrast, Republican sentiment fell by 5%, while Independent sentiment dipped by 3%.

The survey also highlighted that 41% of consumers believe Harris is a better candidate for the economy, compared to 38% for Trump, who held a five-point edge over Biden on economic issues earlier this year.

Expectations for personal finances and the five-year economic outlook reached a four-month high, although consumer expectations shift as the presidential campaign progresses.