NEW YORK, Aug. 29 (Xinhua) -- The U.S. Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers fell to 58.2 in the August 2025 survey, down from 61.7 in July and below last August's 67.9.
The index is now about 20 percent below December 2024 when sentiment exhibited a post-election bump, but remains above the trough in sentiment seen in April.
Meanwhile, the Current Economic Conditions Index fell to 61.7, down from 68.0 in July and above last August's 61.3. The Index of Consumer Expectations fell to 55.9, down from 57.7 in July and below last August's 72.1.
A substantial 43 percent of consumers mentioned that high prices are eroding their living standards, up from 39 percent in July and the highest reading in five months.
High price worries have also extended to big-ticket purchases. Buying conditions for durable goods fell to their lowest reading in a year, and car-buying conditions deteriorated as well.
A growing share of consumers specifically mentioned tariffs or taxes as a negative factor for car buying. Meanwhile, consumers also believe that pressures from high prices are likely to persist into the future.
After improving in July, labor market expectations worsened in August. About 63 percent of consumers expect unemployment to rise in the year ahead, up from 37 percent a year ago.
"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.
