University of Michigan Consumer Sentiment for August: Sentiment edges down

Research evidence excerpt

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M

Update

August 14, 2026 07:33 PM GMT

U.S. Data Pulse | North America

Morgan Stanley & Co. LLC

Michael T Gapen

Chief US Economist

University of Michigan

Consumer Sentiment for

August: Sentiment edges down

Arunima Sinha

Global Economist

Heather Berger

Economist

Sam D Coffin

Economist

Key Takeaways

Diego Anzoategui

Economist

August sentiment fell across income and political groups, with expectations

weakening more than views of current conditions.

Lingdi Xu

Economist

One-year ahead inflation expectations ticked higher in August, led by lower-

income households, reversing some of the improvement seen in recent months.

Long-run inflation expectations remained stable at 3.3%, supporting the view that

inflation expectations remain anchored.

Despite weak sentiment, consumer spending remains resilient, suggesting

sentiment and aggregate spending remain still largely de-linked.

Exhibit 1:

95

Sentiment showed a downtick across income cohorts

Univ of Michigan Consumer Sentiment

85

75

65

55

Index of Consumer Sentiment

45

35

Families w/ inc< $100k/Yr

Families w/Inc > $100k/Yr

Source: University of Michigan, Haver Analytics, Morgan Stanley Research