U.S. consumer sentiment fell for the first time in three months, with the University of Michigan’s preliminary August reading dropping to 51 from July’s final 55.2, below the median economist estimate of 55. The survey pointed to rising concern among households over worsening business conditions and higher inflation. Consumers said they expect prices to rise 4.3% over the next year, a slight increase from the prior month and well above the level seen before the Iran conflict broke out in February. Long-run inflation expectations for the next five to 10 years were 3.3% on an annual basis. The survey also showed that confidence in both short-term and long-term economic prospects weakened after improving for two straight months. Views on the labor market were little changed since the start of the year, while concern about inflation increased and worries about unemployment eased. Responses were collected from July 28 to Aug. 10, a period when the U.S. national average gasoline price stayed above $4 a gallon. A separate report released Friday showed U.S. retail sales in July posted their biggest drop in more than a year as consumers cut back on automobiles and online purchases.
U.S. consumer sentiment fell for the first time in three months, as households grew more concerned about worsening business conditions and rising inflation.
According to survey data released Friday by the University of Michigan, the preliminary consumer sentiment index for August came in at 51, down from July’s final reading of 55.2. The figure was also below the median economist estimate of 55.
Consumers said they expect prices to rise 4.3% over the next year, a slight increase from the previous month and clearly above the level seen before the Iran conflict erupted in February. Over the next five to 10 years, they expect prices to increase at an annual rate of 3.3%.
After improving for two consecutive months, confidence in both the short-term and long-term economic outlook deteriorated. Since the start of the year, expectations for the labor market have changed little. The survey showed consumers are increasingly worried about inflation, while concern about unemployment has eased.
The survey covered responses collected between July 28 and Aug. 10. During that period, the U.S. national average gasoline price remained above $4 a gallon.
A separate report released Friday showed U.S. retail sales in July posted their biggest decline in more than a year, as consumers reduced purchases of automobiles and goods from online stores.
The item was published by BlockBeats, citing Jin10.
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