American consumer confidence declined for the first time in three months, and respondents were concerned about the deteriorating business environment and rising inflation. The initial value released by the University of Michigan on Friday showed that the consumer confidence index fell to 51 in August, lower than the final value of 55.2 in July. The median estimate of economists surveyed by Bloomberg was 55. Consumers expect prices to rise 4.3% in the coming year, a slight increase from the previous month, and significantly higher than the level before the outbreak of the Iranian conflict in February. Consumers expect an annual inflation rate of 3.3% over the next five to ten years. US Consumer Sentiment Falls in AugustOpinions about Inflation and the Economic Outlook weighed on HouseholdsConsumer Sentiment Index 4060801001-year inflation estimates 2468% 2021-2023202420252026Source: University of Michigan Open Chart in G survey Joanne Hsu said in a statement: “Although the weakening of consumer confidence at the beginning of the month was widespread among different groups, the decline in confidence among elderly consumers, low-income consumers, and consumers without a college degree was particularly evident. These groups are all particularly vulnerable to inflation eroding their purchasing power.” Consumer confidence in both the short and long term economic prospects has deteriorated. Consumer expectations of the labor market have changed little since the beginning of the year. Consumer concerns about inflation are increasing, and concerns about unemployment are weakening, according to the survey. The survey covered respondents from July 28 to August 10. During this period, the national average gasoline price in the US remained above $4 per gallon. Another report on Friday showed that retail sales in the US recorded the biggest drop in more than a year in July, mainly due to a decrease in consumer purchases of cars and online purchases.

American consumer confidence declined for the first time in three months, and respondents were concerned about the deteriorating business environment and rising inflation. The initial value released by the University of Michigan on Friday showed that the consumer confidence index fell to 51 in August, lower than the final value of 55.2 in July. The median estimate of economists surveyed by Bloomberg was 55. Consumers expect prices to rise 4.3% in the coming year, a slight increase from the previous month, and significantly higher than the level before the outbreak of the Iranian conflict in February. Consumers expect an annual inflation rate of 3.3% over the next five to ten years. US Consumer Sentiment Falls in AugustOpinions about Inflation and the Economic Outlook weighed on HouseholdsConsumer Sentiment Index 4060801001-year inflation estimates 2468% 2021-2023202420252026Source: University of Michigan Open Chart in G survey Joanne Hsu said in a statement: “Although the weakening of consumer confidence at the beginning of the month was widespread among different groups, the decline in confidence among elderly consumers, low-income consumers, and consumers without a college degree was particularly evident. These groups are all particularly vulnerable to inflation eroding their purchasing power.” Consumer confidence in both the short and long term economic prospects has deteriorated. Consumer expectations of the labor market have changed little since the beginning of the year. Consumer concerns about inflation are increasing, and concerns about unemployment are weakening, according to the survey. The survey covered respondents from July 28 to August 10. During this period, the national average gasoline price in the US remained above $4 per gallon. Another report on Friday showed that retail sales in the US recorded the biggest drop in more than a year in July, mainly due to a decrease in consumer purchases of cars and online purchases.