US consumer sentiment retreats in August from highest since October 2021

By Ovunc Kutlu

ISTANBUL (AA) - US consumer sentiment declined in August, retreating from its July level that was the highest since October 2021, according to the University of Michigan's consumer survey final results released Friday.

The index of consumer sentiment decreased 2.1 percentage points to 69.5 in August, from 71.6 in July.

The market expectation for the index was to come in at 71.2.

"While buying conditions for durables and expectations over living conditions both improved, the long-run economic outlook fell back about 12% this month but remains higher than just two months ago," Surveys of Consumers Director Joanne Hsu said in a statement.

"Consumers perceive that the rapid improvements in the economy from the past three months have moderated, particularly with inflation, and they are tentative about the outlook ahead," she added.

Year-ahead inflation expectations increased from 3.4% in July to 3.5% in August, while long-run inflation expectations came in at 3% for the third consecutive month.

The index of current economic conditions declined 0.9 point to 75.7 in August, from 76.6 in July, according to the survey results.

The index of consumer expectations plummeted 2.8 points to 65.5 from 68.3 during that period.