Consumer sentiment fell for the first time in six months, slipping 4% month-over-month according to the latest University of Michigan Surveys of Consumers.

The majority of index components pulled back and there are widespread concerns about inflation, likely to prompt spending now in order to avoid future price increases. Robust auto and retail sales data support this view.

Year-ahead inflation expectations soared from 2.8% last month to 3.3%. The reading is the highest since May 2024 and is above the 2.3-3.0% range seen in the two years prior to the pandemic. Sentiment declines were seen across incomes, wealth, and age groups.

In addition to The Conference Board Consumer Confidence Index, the University of Michigan index is more focused on household finances and inflation.  It is less volatile than the Conference Board study.

For more:

http://www.sca.isr.umich.edu/

https://www.conference-board.org/topics/consumer-confidence