U.S. consumer confidence declined in August, mainly due to concerns about inflation.

Jin10 Data reported on August 15 that Joanne Hsu, director of the Consumer Survey at the University of Michigan, stated that the U.S. Consumer Confidence Index fell by about 5% in August, marking the first decline in four months. This deterioration is largely attributed to increasing concerns about inflation. Due to high prices, the purchasing conditions for durable goods dropped by 14%, the lowest level in a year. Additionally, personal financial situations saw a slight decline, reflecting growing worries about purchasing power. In contrast, personal financial expectations rose slightly, and income expectations strengthened a bit, although they remain sluggish. Overall, consumers are no longer preparing for the worst-case scenario that was announced in April regarding the equivalent tariffs that were later suspended. However, consumers still anticipate worsening inflation and unemployment rates in the future. Meanwhile, inflation expectations for the next year rose from 4.5% last month to 4.9% this month. Long-term inflation expectations also increased from 3.4% in July to 3.9% in August. This month ended the decline in short-term inflation expectations for two consecutive months and long-term inflation expectations for three consecutive months. Nevertheless, both figures remain well below the temporary peaks seen in April and May of 2025.