Consumer Sentiment Drops to 58.6 in August Preliminary Report

August Consumer Sentiment

• 📉 The preliminary University of Michigan consumer sentiment for August came in at 58.6, lower than the expected 62.5 and the previous month's final read of 61.7.
• ⚠️ This marks the weakest sentiment reading since May, when the number was 52.2.

Current Conditions and Expectations

• 📊 Current economic conditions were reported at 60.9, also the lowest since May.
• 🔮 Inflation expectations for the next one year rose to 4.9%, following 4.5% in the previous report, but this is still lower than the May reading of 6.6%.
• 📈 The 5-to-10-year inflation outlook stands at 3.9%, higher than expectations and the previous month's 3.4%.

Business Inventories and Interest Rates

• 📦 June business inventories increased by 0.2%, exactly as expected.
• 📈 Interest rates remain relatively stable, with the 10-year Treasury yield at 4.29% and the 2-year yield at 3.72%, showing minimal change over the week.