WASHINGTON, Aug 14 (Reuters) - U.S. consumer sentiment slumped in early August amid worries about the rising cost of living because of the conflict in the Middle East, a survey showed on Friday.
The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to 51.0 this month from 55.2 in July, ending two straight months of improvement. Economists polled by Reuters had forecast the index would be at 54.5.
The decline in sentiment occurred across the political spectrum, with an especially big month-to-month drop among Republicans.
"Sentiment among Republicans is now 19% below readings just prior to the Iran conflict and the lowest since the 2024 election," said Joanne Hsu, the director of the Surveys of Consumers. "Although the early-month weakening in sentiment was pervasive across various demographic groups, notably large reductions were seen among older consumers, lower-income consumers, and those without a college degree."
The survey's measure of consumer expectations for inflation over the next year increased to 4.3% from 4.2% in July. Consumers' expectations for inflation over the next five years were unchanged at 3.3%.
Reporting by Lucia Mutikani and Paul Simao
Source: Reuters