A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment increased 0.4 percent m-o-m to 72.8 in early August.

Economists had expected the index would decrease to 72.0 this month from July’s final reading of 72.5.

According to the report, the index of current U.S. economic conditions dropped 0.4 percent m-o-m to 82.5 in August from 82.8 in the previous month. Meanwhile, the index of consumer expectations rose 0.9 percent m-o-m to 66.5 this month from 65.9 in July.

The report noted: “The policy gridlock has acted to increase uncertainty and heightened the need for precautionary funds to offset lapses in economic relief programs and to hedge against fears about the persistence and spread of the coronavirus as the school year gets underway. Bad economic times are anticipated to persist not only during the year ahead, but the majority of consumers expect no return to a period of uninterrupted growth over the next five years.“