Consumer Sentiment Falls by 5% in August
Consumer confidence fell in August. The University of Michigan's Consumer Sentiment Index dropped 5% in August, leaving it 14% lower than a year ago and down 21% so far in 2025. Expectations for the economy's future have tumbled 22% this year, with worries about personal finances, job security, inflation, and the business climate cutting across party lines. Inflation expectations for the next 12 months have eased to 5%, but more Americans now fear runaway prices: the share anticipating double-digit inflation has surged from 19% in December to 33% in June. At the same time, optimism about the job market is fading-30% fewer consumers expect unemployment to fall, while those bracing for higher joblessness have jumped 43%.
Click here for the latest Lehigh Valley Economic Review.
Listen to Economic Pulse Fridays at 5:44 PM during All Things Considered; Mondays at 7:30 AM during Morning Edition.
(Original air-date: 8/22/25)
