U.S. consumer sentiment fell by less than expected in August on a more positive outlook for the economy amid a strong job market, a University of Michigan report showed Friday.
The sentiment index decreased to a seven-month low of 96.2 (est. 95.5) from 97.9 in July; the preliminary reading was 95.3.
The current conditions gauge fell to 110.3, the lowest since November 2016, from 114.4 in the prior month (prelim. 107.8).
The expectations measure decreased to 87.1 from 87.3 (prelim. 87.3).
A gauge of buying conditions for long-lasting goods decreased to the lowest since 2015 amid rising prices and interest rates, the survey showed. At the same time, income expectations and job certainty have become the main reasons cited by consumers for positive views on spending.
Inflation expectations for the coming year matched the highest since 2014. They were higher for those who saw a negative impact from tariffs compared with respondents who didn’t mention levies, the survey showed.
Sentiment has been pulling back from loftier levels earlier this year amid trade tensions and rising inflation that’s eating away at Americans’ wallets. Nonetheless, a strong economy, record highs in the stock market and one of the best labor markets in decades are seen helping to support healthy consumer spending.
Personal finances remained “very favorable” as 55% of households cited recent financial gains and near record numbers mentioned improving household wealth, according to the survey.
