US Sentiment Falls, Inflation Expectations Rise
US consumer sentiment fell to 58.6 in August from 61.7—the first decline since April. The University of Michigan survey was conducted July 29–August 11, with tariff concerns again weighing on confidence.
Full-year inflation expectations rose to 4.9%, while the 5–10-year forecast was 3.9%. Both were worse than economists' forecasts.
Job concerns also increased: 62% of respondents predicted unemployment would rise. 58% planned to cut back on spending (cars, household goods, dining out), and durable goods purchasing conditions fell to their lowest in a year.
Meanwhile, retail sales continued to rise in July. The current conditions index fell to 60.9 (a three-month low) and expectations to 57.2, while nearly a third of respondents predicted interest rates would fall—with wide political differences. (ayu)
Source: Newsmaker.id
