US consumer sentiment slips in August as inflation fears resurface.
US consumer sentiment declined for the first time in four months in August, according to a preliminary reading from the University of Michigan, falling to 58.6 from 61.7 in July — well below consensus forecasts of 62.
Source: Sharecast
August's drop was principally due to renewed concerns over inflation and a sharp deterioration in buying conditions for durable goods.
The current conditions gauge fell to 60.9 from 68.0, while the expectations index eased to 57.2 from 61.7.
Short-term inflation expectations jumped to 4.9% from 4.5%, ending a two-month retreat, while the five-year outlook rose to 3.9% from 3.4%. However, both remained below peaks seen in April and May.
Despite a modest improvement in expectations for personal finances, consumers continued to anticipate higher inflation and rising unemployment ahead.
Reporting by Iain Gilbert at Sharecast.com
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