US consumer confidence slides to lowest level in months

14th Aug 2026 12:12

(Sharecast News) - US consumer sentiment weakened sharply in August, according to preliminary figures from the University of Michigan, with all major measures of household confidence deteriorating on both a monthly and annual basis.

The headline index fell to 51.0 from 55.2 in July, leaving it more than 12% lower than a year earlier, while the current economic conditions gauge slipped to 51.8 from 54.8, and the index of consumer expectations dropped to 50.6 from 55.4, reflecting a broad pullback in views on the economic outlook.

The survey noted that overall sentiment declined about 8%, ending a two‑month run of improvement. While assessments of personal finances eased only slightly, expectations for business conditions weakened sharply, falling 11% for the year ahead and 17% over the longer term.

The decline was broad‑based across political groups, with Republicans showing the steepest monthly fall. Sentiment among Republican respondents now sits 19% below levels seen before the Iran conflict and at its lowest since the 2024 election.

Larger drops were also recorded among older, lower‑income and non‑college‑educated consumers, groups the survey said were particularly vulnerable to any erosion in purchasing power.

Only 8% of consumers expect their income to outpace inflation over the next year, down from 18% in late 2024, underscoring persistent concerns over high prices.

Year‑ahead inflation expectations edged up to 4.3% from 4.2% in July, well above readings seen before the Iran conflict, while long‑run expectations were unchanged at 3.3%, slightly above their 2024 range.

Reporting by Iain Gilbert at Sharecast.com