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 coll

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.