Michigan Consumer Sentiment Index Falls Below Expectations in Preliminary August Survey

10:08 AM EDT, 08/15/2025 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index fell to 58.6 in August from 61.7 in July, below expectations for an increase to 62.0 in a survey compiled by Bloomberg as of 7:35 am ET.

The current conditions index declined to 60.9 in August from 68.0 in July, while the expectations reading fell to 57.2 from 57.7.

Respondents saw one-year inflation expectations at 4.9%, up from 4.5% in July, while five-year inflation expectations increased to 3.9% from 3.4%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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