U.S. Consumer Sentiment Unexpectedly Deteriorates In August
(RTTNews) - Consumer sentiment in the U.S. has unexpectedly deteriorated in the month of August, according to preliminary data released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment index fell to 58.6 in August from 61.7 in July. Economists had expected the index to inch up to 62.0.
"This deterioration largely stems from rising worries about inflation," said Surveys of Consumers Director Joanne Hsu. "Buying conditions for durables plunged 14%, its lowest reading in a year, on the basis of high prices."
"Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," she added. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future."
The report said the current economic conditions index tumbled to 60.9 in August from 68.0 in July, while the index of consumer expectations dipped to 57.2 in August from 57.7 in July.
On the inflation front, year-ahead inflation expectations jumped to 4.9 percent in August from 4.5 in July, reflecting increases across multiple demographic groups and all three political affiliations.
Long-run inflation expectations also surged to 3.9 percent in August from 3.4 percent in July, rebounding following three straight months of decreases.
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