Economic Buzz: US consumer confidence drops in August

Consumer sentiment in the United States declined in August, according to a final monthly report published by the University of Michigan on Friday. The index decreased by 6.3% on a monthly basis to 51.7, while it dropped by 11.2% on an annual level. Additionally, the figure came in slightly higher than the preliminary reading of 51.

Meanwhile, the Current Economic Conditions Index slipped by 5.3% in the reported month compared to July and plunged by 15.9% compared to August 2025, standing at 51.9 points. The Index of Consumer Expectations fell by 7% month-over-month and lost 7.9% on a yearly basis, amounting to 51.5.

Sentiment declines in August were seen for all political groups and were particularly acute among Republicans. Moreover, groups who are typically less-equipped to absorb increases in cost of living also exhibited stronger decreases in sentiment, including older consumers, lower- and middle-income consumers, and those with no stock holdings, it was noted in the report.

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