US consumer confidence takes a hit amid inflation concerns
In August 2024, US consumer confidence took a noticeable dip.
The University of Michigan's index fell to 58.6 from July's 61.7, reversing months of slow improvement and landing below what experts expected.
Rising prices and worries about import tariffs are making people more cautious about spending.
Inflation fears are making folks rethink buying
Joanne Hsu, who leads the survey, pointed out that inflation fears are making folks rethink buying things like cars or appliances—buying conditions for these dropped by 14%, hitting their lowest in a year.
Inflation worries are back again
After easing for a while, inflation worries are back: People now expect prices to rise almost 5% over the next year (up from July), and even long-term expectations have ticked up.
This renewed anxiety is weighing on confidence for both higher- and lower-income households alike.