Americans became slightly less optimistic about the economy this month, following two straight months of growing confidence.
Consumer sentiment tracked by the University of Michigan fell to 71.2 in August from the prior month, down from a reading of 71.6 in July, according to a preliminary estimate. Sentiment had been on an upswing throughout the summer, mostly due to slower inflation, and is well above the record lows reached this time last year.
“In general, consumers perceived few material differences in the economic environment from last month, but they saw substantial improvements relative to just three months ago,” said the University of Michigan’s Director of Surveys, Joanne Hsu, in a release.
Expectations for inflation rates in the year ahead inched down to a 3.3% rate from 3.4% in the previous reading.
Signs of cooling inflationGas prices, which are highly visible indicators of inflation for consumers, have risen in recent weeks, which could weigh on sentiment in the future. And the Consumer Price Index rose 3.2% in July from a year earlier, up from June’s 3% annual rise, though underlying price pressures continued to ease. Source: CNN
