The University of Michigan’s Consumer Sentiment Index was finalized at 51.0 for August, confirming the preliminary reading and marking a 7.6% drop from July’s 55.2. The result reflects a sharp reversal of recent improvements, driven by household anxiety over persistent price pressures and the economic fallout from Middle East conflicts. Sentiment currently sits just above the record low of 44.8 recorded in May 2026.
While the headline figure was unchanged from the preliminary report, year-ahead inflation expectations were revised down slightly to 4.2% from the 4.3% initial estimate. Long-run five-year inflation expectations held steady at 3.3%. Market reaction was relatively subdued, with major indices maintaining a defensive posture as investors pivoted focus toward Fed Chair Kevin Warsh’s policy signal at the Jackson Hole symposium.