US consumer sentiment declines in August

By Mucahithan Avcioglu

ISTANBUL (AA) - Consumer sentiment in the US posted a decrease in August compared to July, according to final results from the University of Michigan's consumer survey released Friday.

The index of consumer sentiment was revised downwards from the preliminary estimates of 58.6 points to 58.2 points for August.

"This month’s decrease was visible across groups by age, income, and stock wealth. Moreover, perceptions of many aspects of the economy slipped," Surveys of Consumers Director Joanne Hsu said in a statement.

Buying conditions for durable goods subsided to their lowest level in a year, and current personal finances dropped 7%, both due to concerns about high prices, according to the data.

Expectations for business conditions and labor markets also fell in August.

However, expectations for personal finances were steady this August, though at "relatively subdued" levels compared to a year ago.

"Few consumers spontaneously mentioned the recent events at the Bureau of Labor Statistics and the Federal Reserve (interviews closed on Monday, August 25, the day Trump announced he was firing Governor Cook)," Hsu said.

Meanwhile, short-term inflation expectations rose to 4.8% in August from the previous month's 4.5%.

"This rise was seen across multiple demographic groups. Independents and Republicans both exhibited month-over-month increases; expectations for Democrats were unchanged from July," Hsu noted.

Long-term inflation expectations ticked up to 3.5% in August from 3.4% in July.

"This month ended two consecutive months of receding inflation for short-run expectations and three straight months for long-run expectations. Still, both readings remain well below the highs seen briefly in April and May 2025," Hsu added.