University of Michigan preliminary August consumer sentiment index fell to 51
from July’s final 55.2, below a median forecast of 55. One-year inflation
expectations rose to 4.3% (up slightly month-on-month and notably above
pre-February Iran-conflict levels); five- to ten-year inflation expectations
held at 3.3% annually. Sentiment on both near- and long-term economic prospects
deteriorated after two months of improvement; labor-market expectations were
little changed. Survey responses were collected July 28–Aug 10, a period when
U.S. national gasoline prices averaged above $4/gal. Separately, U.S. July
retail sales posted their largest monthly decline in over a year as consumers
cut auto and online spending.
