U.S. consumer sentiment rises in early August

U.S. consumer sentiment rose in early August as economic prospects improved.

The preliminary reading of the consumer sentiment for August increased to 90.4 from 90 in July, said the Thomson Reuters/University of Michigan index of consumer sentiment on Friday.

This was the first rise since May, but the data was lower than the market expectation of 91.5.

"Confidence inched upward in early August due to more favorable prospects for the overall economy offsetting a small pullback in personal finances," said survey director Richard Curtin.

"Most of the weakness in personal finances was among younger households who cited higher expenses than anticipated as well as somewhat smaller expected income gains," he said.

Concerns about the outcome of the presidential election as a source of uncertainty about future economic prospects were rising among consumers, he added.

The sub-index of current conditions, reflecting Americans' perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like cars, fell to 106.1 from 109 last month.

The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, increased to 80.3 from 77.8 in July. Endi