US Consumer Sentiment Tumbles as Gas Hits $4.06 and July Retail Sales Fall 0.6%
Updated
Updated · Marketplace · Aug 17
US Consumer Sentiment Tumbles as Gas Hits $4.06 and July Retail Sales Fall 0.6%
3 articles · Updated · Marketplace · Aug 17
Summary
University of Michigan’s preliminary August survey showed consumer sentiment tumbling as households faced higher fuel costs and a weakening job market.
AAA put the national average for regular gasoline at $4.06 a gallon Monday, near a record high for August, after the war in Iran pushed energy prices up.
July retail sales fell 0.6% from June—the first drop in nine months and the biggest in over a year—adding to signs that consumers are pulling back.
Only 8% of consumers expect income growth to outpace inflation, and economists said spending is shifting toward necessities while travel, big-ticket purchases and other discretionary categories soften.
That mix points to slower consumer spending ahead rather than a collapse, a risk for an economy that has relied heavily on household demand.