On August 15, Jin10 data reported that Joanne Hsu, director of the University of Michigan Consumer Survey, stated that the U.S. consumer confidence index fell by about 5% in August, marking the first decline in four months. This deterioration is largely due to escalating concerns over inflation. Due to high prices, the purchasing conditions for durable goods have dropped by 14%, reaching the lowest level in a year. Additionally, personal financial situations have slightly declined, reflecting heightened worries about purchasing power. In contrast, personal financial expectations have slightly increased, while income expectations have strengthened slightly, but income expectations remain sluggish. Overall, consumers are no longer preparing for the worst-case scenario after the announcement in April regarding the suspension of reciprocal tariffs. However, consumers still anticipate that inflation and unemployment rates will deteriorate in the future. Meanwhile, the inflation expectation for the coming year has risen from 4.5% last month to 4.9% this month. Long-term inflation expectations have also increased from 3.4% in July to 3.9% in August.
