WASHINGTON: U.S. consumer sentiment softened in August as households anticipated higher goods prices because of import tariffs.
The University of Michigan's Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 58.6 this month from a final reading of 61.7 in July. Economists polled by Reuters had forecast the index would increase to 62.0.
"This deterioration largely stems from rising worries about inflation," Joanne Hsu, the director of the Surveys of Consumers, said in a statement.
"Buying conditions for durables plunged 14%, its lowest reading in a year, on the basis of high prices."
Consumers' 12-month inflation expectations increased to 4.9% this month from 4.5% in July. Long-run inflation expectations rose to 3.9% from 3.4% last month.
The University of Michigan's Surveys of Consumers on Friday said its Consumer Sentiment Index dropped to 58.6 this month from a final reading of 61.7 in July. Economists polled by Reuters had forecast the index would increase to 62.0.
"This deterioration largely stems from rising worries about inflation," Joanne Hsu, the director of the Surveys of Consumers, said in a statement.
"Buying conditions for durables plunged 14%, its lowest reading in a year, on the basis of high prices."
Consumers' 12-month inflation expectations increased to 4.9% this month from 4.5% in July. Long-run inflation expectations rose to 3.9% from 3.4% last month.
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