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Consumer sentiment rises August, ignores economy jitters

A shopper looks at Michael Kors handbags at Macy's flagship store in New York.
Scott Mlyn | CNBC
A shopper looks at Michael Kors handbags at Macy's flagship store in New York.

U.S. consumer sentiment rose in August, while an index of current economic conditions hit its highest since July 2007, a survey released on Friday showed.

The Thomson Reuters/University of Michigan's final August reading on the overall index on consumer sentiment came in at 82.5, up from 81.8 the month before. It was above the the median forecast of 80.1 among economists polled by Reuters.

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"Consumer confidence rebounded in late August due to a positive reassessment of prospects for the national economy,'' survey director Richard Curtin said in a statement.

"A weakened trend in equity and home prices in the absence of resurgent wages would threaten the modest pace of consumer spending that is now expected.''

The survey's barometer of current economic conditions rose to 99.8 from 97.4, marking its highest level since July 2007 and above a forecast of 99.5.

Read MoreBy the numbers—US recovery finally taking hold

The survey's gauge of consumer expectations slipped for a fourth straight month, to 71.3 from 71.8, marking its lowest level since March but above an expected 67.0. The survey's one-year inflation expectation fell to 3.2 percent from 3.3 percent, while the survey's five-to-10-year inflation outlook was at 2.9 percent, up from 2.7 percent.

--By Reuters

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