Consumer Sentiment Was Weaker in August, per Michigan Survey

By Jessica Coacci

Consumer sentiment worsened in August, confirming its preliminary reading earlier this month, according to the University of Michigan's monthly survey.

The survey's sentiment index fell to 51.7 in August, lower than 55.2 in July, according to its final results published Friday. Economists polled by The Wall Street Journal were expecting a reading of 51.

The August drop leaves sentiment above the historic lows in the mid-40s touched earlier this year. However, sentiment fell about 6% from last month, landing about 11% below a year ago amid continued worries that inflation will remain elevated for the foreseeable future, the survey said.

"With ongoing policy uncertainty including the Iran conflict, consumers anticipate further increases in gasoline prices both in the short and long run," said Joanne Hsu, the survey's director.

Sentiment declines in August were seen for all political groups and were particularly acute among Republicans.

Meanwhile, long-run inflation expectations held steady at 3.3% for the third consecutive month. Economists and Federal Reserve officials watch long-run inflation expectation measures to ensure price pressures don't become a self fulfilling prophecy.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

August 28, 2026 10:29 ET (14:29 GMT)