US Economy: US consumer sentiment clouded slightly in August

US consumer sentiment was slightly clouded in August

Strong inflation in the US dampens buying sentiment and consumers negatively assess prospects in the coming months.

Published today at 4:40 PM

Over the next twelve months, consumers expect inflation of 3.3%.

Image: Dustin Chambers/Bloomberg

Consumer sentiment in the U.S. was slightly clouded in August. The University of Michigan barometer fell 0.4 points to 71.2 in its monthly survey on Friday. Economists polled by Reuters had expected a slightly sharper decline to 71.0 points. Consumers rated their situation better than in the previous month, but prospects for the coming months were poor.

Strong inflation in the US dampens buying sentiment. Although inflation rose again to 3.2% for the first time in a year, consumers’ inflation expectations have now eased slightly: Looking ahead to the next twelve months, they expect the rate of inflation for goods and services to be the same. 3.3 % In July, consumers estimate 3.4%.

The US Federal Reserve has raised interest rates from near zero to a range of 5.25% to 5.50% from early 2022. It’s unclear if he’ll enroll or stop in September. US Treasury Secretary Mary Daley has warned against prematurely declaring victory over inflation.