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AXIOS (Neil Irwin) - Consumer sentiment dips, especially among Republicans Fri Aug 14 15:58:05 2026

Data: University of Michigan ; Note: August 2026 number is preliminary; Chart: Neil Irwin/Axios Public opinion about the economy appears to be souring further this month, per the preliminary release of the University of Michigan's consumer sentiment index. By the numbers: Overall sentiment fell 8% in the early days of August, after two consecutive months of improvement. - The index fell to 51, from 55.2 in July. That remains above the recent lows reached in the spring, when gasoline prices were soaring. - Inflation expectations were stable, with expected inflation over the next year ticking up to 4.3% and over the next five years unchanged at 3.3%. The intrigue: The steepest month-to-month drop in sentiment was among survey respondents who identify as Republicans, with their outlook now 19% below readings from just before the Iran war and at the lowest since the 2024 election. What they're saying: "Although the early-month weakening in sentiment was pervasive across various demographic groups, notably large reductions were seen among older consumers, lower-income consumers, and those without a college degree," said Joanne Hsu, director of the Michigan survey. - "These groups are all particularly vulnerable to any erosion of purchasing power stemming from inflation," she added. - "Across all consumers, only 8% expect their income growth to exceed inflation in the year ahead, down from 18% in December 2024, a reflection of the belief that high prices will continue to be burdensome."