WASHINGTON—Consumer sentiment slipped in August for the first time in four months, as inflation worries weighed heavily on households, the University of Michigan’s latest consumer survey shows.
Sentiment fell about 5% in August, driven largely by renewed concerns over rising prices. Buying conditions for durable goods plunged 14% to their lowest level in a year, while assessments of current personal finances also declined modestly amid fears of eroding purchasing power.
By contrast, expectations for future personal finances edged slightly higher, supported by a modest firming in income outlooks, though confidence remains subdued. Consumers no longer anticipate the worst-case economic outcomes feared in April following tariff disputes, but they still expect both inflation and unemployment to worsen in the months ahead, the University of Michigan said.
Year-ahead inflation expectations climbed to 4.9% in August, up from 4.5% in July, with increases cutting across demographic groups and political affiliations. Longer-run expectations also rose to 3.9% from 3.4%. The upticks ended a string of recent declines, though both measures remain below the highs reached earlier this spring.