U.S. consumer sentiment slips in August as inflation worries intensify

BlockBeats News: U.S. consumer confidence fell in August for the first time in three months, as households grew more uneasy about deteriorating business conditions and rising inflation. Preliminary results from the University of Michigan's Friday release showed the August consumer sentiment index at 51, down from July's final 55.2 and below the median economist estimate of 55. Inflation expectations edged higher. Consumers now see prices rising 4.3% over the next year, slightly above last month and well above levels seen before the Iran conflict erupted in February. Longer-term expectations also ticked up, with respondents projecting 3.3% average annual inflation over the next five to ten years. After improving for two straight months, both short- and long-term economic outlooks weakened. Views on the labor market have been broadly steady since the start of the year, with inflation concerns increasing even as worries about unemployment eased. The survey was conducted from July 28 to August 10, a period when the U.S. national average gasoline price stayed above $4 per gallon. Separately on Friday, data showed U.S. retail sales posted their steepest monthly drop in more than a year in July, reflecting cutbacks in vehicle purchases and online spending. (Jin10)