US consumer sentiment deteriorates in August

WASHINGTON, Aug 14 (Reuters) - ‌U.S. consumer ​sentiment ​slumped in early August amid worries about the rising cost of ‌living because of the conflict in the ⁠Middle East, a survey showed on Friday.

The University ‌of Michigan's Surveys of ‌Consumers said its Consumer Sentiment Index dropped to 51.0 this month from 55.2 in ​July, ending two straight months of improvement. Economists polled by Reuters had forecast ⁠the index would be at 54.5.

The decline in sentiment occurred ​across the political spectrum, with an especially big month-to-month drop among Republicans.

"Sentiment ​among Republicans is now 19% ‌below readings just prior to the Iran conflict and the lowest ⁠since the 2024 election," said Joanne Hsu, the director of the Surveys of Consumers. "Although the ⁠early-month weakening in sentiment was pervasive across various demographic ​groups, notably large reductions were seen among older consumers, lower-income consumers, and those without a college degree."

The ‌survey's measure of consumer expectations for inflation over the next year ‌increased to 4.3% from 4.2% in July. ⁠Consumers' expectations for ‌inflation over the ​next five years were unchanged at 3.3%.

(Reporting by Lucia Mutikani and Paul ‌Simao)

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