U.S. Consumer Confidence Tumbles to 58.2 Percent in August
(MENAFN) Consumer confidence in the United States has tumbled to its weakest level in five months, with University of Michigan data revealing mounting anxiety over persistent inflation and deteriorating economic outlook.
The University of Michigan (UM) Surveys of Consumers Consumer Sentiment Index dropped sharply to 58.2 in August 2025, marking a significant decline from July's 61.7 reading and falling well short of the previous year's August figure of 67.9, according to Friday's release.
Current sentiment has now retreated approximately 20 percent from December 2024's post-election peak, though it maintains position above April's low point. The Current Economic Conditions Index similarly contracted to 61.7 from July's 68.0, while exceeding last August's 61.3 baseline. Consumer Expectations registered 55.9, sliding from July's 57.7 and substantially below the prior year's 72.1.
Inflation concerns have intensified dramatically, with 43 percent of respondents citing elevated prices as undermining their quality of life—a jump from July's 39 percent and representing the highest proportion recorded in five months.
Price anxieties are now constraining major purchase decisions. Durable goods buying sentiment reached its weakest point in twelve months, while automotive purchasing conditions also declined. An expanding segment of consumers identified tariffs or taxation as deterrents to vehicle purchases.
Employment outlook has simultaneously deteriorated following July's brief improvement. Unemployment expectations have surged, with 63 percent of consumers anticipating job market weakness over the coming year, compared to just 37 percent twelve months earlier.
"Although consumers no longer fear the catastrophic scenarios they anticipated in the wake of the April tariff announcements, they believe that the current trade environment continues to pose threats to the multiple facets of the economy," said economist Joanne Hsu, director of the UM's Surveys of Consumers.
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