University of Michigan Consumer Sentiment Index came in at 55.5 points

According to preliminary data, the University of Michigan consumer sentiment index in August fell to 51.0 points from 55.2 in July. The figure was expected to come in at 54.2 points. Survey data showed that consumers’ inflation expectations over the next year rose to 4.3% from 4.2% in July. Consumers’ inflation expectations over the next five years were unchanged at 3.3%. 

Both main components weakened: the current conditions index fell to 51.8 points, while the expectations gauge dropped to 50.6. The deterioration affected all political and demographic groups, with an especially sharp decline among older, lower-income, and less-educated consumers, who are more exposed to rising prices. Expectations for business conditions also worsened significantly, falling by 11% over the next year and by 17% over the long term.