The
University of Michigan's preliminary consumer sentiment index fell to 51.0,
missing expectations of 55.0 and down from July's 55.2.
Both current economic conditions (51.8) and future expectations (50.6) declined, with drops across political groups—Republicans hit hardest—and only 8% expecting income to beat inflation.
Year-ahead inflation expectations rose to 4.3%, while director Joanne Hsu pointed to an 8% sentiment drop tied to sinking business outlooks. The reading fits a broader downward trend in confidence, complicating policymakers' balance of growth and prices.