US Consumer Sentiment Dives Amid Ongoing Inflation Fears
US consumer sentiment has taken a hit in August due to ongoing inflation worries, according to data from the University of Michigan. The survey found that overall sentiment dropped 6% from July's reading and is now at its lowest point since February.
The decline was particularly sharp among older consumers and those from lower- and middle-income groups. 'Sentiment declines in August were seen for all political groups, and were particularly acute among Republicans,' the survey noted.
The war in the Middle East has contributed to rising US inflation, with gasoline prices soaring after the United States and Israel launched their military campaign against Iran in February. As a result, consumers are expecting further increases in gasoline prices both short- and long-term.