U.S. consumer sentiment climbed in early August for the first time in five months, buoyed by Vice President Kamala Harris' sudden entrance into the 2024 presidential race, and Americans' positive feelings about their personal finances amid stabilizing inflation rates, according to Bloomberg News.
The rate rose to 67.8 from 66.4 in July, according to the preliminary August reading from the University of Michigan, Bloomberge reported.
"Consumer expectations are subject to change as the presidential campaign comes into greater focus, even as consumers expect that inflation — still their top concern — will continue stabilizing," survey director Joanne Hsu said in a statement.
The survey showed that consumers expect prices to continue to climb at an annual rate of 2.9% over the next year, unchanged from last month, and predict costs will rise 3% over the next five years, Bloomberg reported.
"With election developments dominating headlines this month, sentiment for Democrats climbed 6% in the wake of Harris replacing Biden as the Democratic nominee for president," the survey said.
"For Republicans, sentiment moved in the opposite direction, falling 5% this month," it said, adding that independents fell in the middle, rising 3%.
The survey also showed that 41% of consumers see Harris as the candidate better suited to handle the economy, compared to the 38% who selected Donald Trump, the Republican nominee.
The former president had held a 5-point advantage over President Joe Biden on the economy between May and June.
Biden dropped out of the presidential race last month and endorsed Harris as his successor.
Since then, she has erased much of the advantage Trump had in the polls, has attracted enthusiastic and large crowds to her campaign rallies and leads Trump in fundraising.
