Correction: UMich's Aug U.S. Consumer Sentiment Down 6.3%


   
   Corrects headline and data to reflect new August numbers

    

   SECAUCUS, NJ (DTN) -- U.S. consumer sentiment tumbled in August, ending two 
straight months of improvement as sharp drops in expected business conditions 
weighed on overall consumer confidence, the University of Michigan (UMich) 
reported Friday (8/28).

   UMIch's Index of Consumer Sentiment slid 3.5 points to a reading of 51.7 
this month, marking a decline of 6.3% from July. Year-on-year, the index fell 
11.2%.

   The university's Current Economic Conditions Index, another key gauge that 
measures sentiment on personal finances and buying conditions, fell 2.9 points, 
or 5.3%, to 51.9 from the prior month. Year-on-year, that index sank 15.9%.

   "Consumer sentiment fell about 8% this August, ending two consecutive months 
of improvement. While views of personal finances saw only minor declines, 
expected business conditions sank 11% for the short run and 17% for the long 
run," Joanne Hsu, director of UMIch's Surveys of Consumers, said in a statement.

   Year-ahead inflation expectations ticked down to 4% from 4.2% in July, UMich 
noted. The current reading still substantially exceeds the 3.4% reading seen in 
February prior to the start of the Iran conflict, along with all 2024 readings, 
the report stated.

   Long-run inflation expectations held steady at 3.3% in August for the third 
consecutive month, remaining slightly higher than the 2.8% to 3.2% range seen 
in 2024.




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