WASHINGTON, Aug. 29 (Xinhua) -- U.S. consumer sentiment dropped about 11 percent in August from a year earlier, according to data released Friday by the University of Michigan.
The decline came amid continued concerns that inflation will remain elevated for the foreseeable future, according to the university's widely watched consumer sentiment index.
Sentiment declined across all political groups in August, with the drop particularly pronounced among Republicans, the report said.
Moreover, groups typically less-equipped to absorb increases in the cost of living also recorded sharper declines in sentiment, including older consumers, lower- and middle-income consumers, and those without stock holdings, according to the report.
Some experts said the findings, together with a confluence of other economic factors, pointed to growing pressure on U.S. consumers.
"With inflation running above 3 percent, anemic job growth, and flat real incomes, there's nothing much to make households happy," Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, told Xinhua.
Amid ongoing policy uncertainty, including the conflict with Iran, consumers expect gasoline prices to rise further both in the short and long term, according to the report.
Beyond the pocketbook concerns that have long shaped consumers' views of the economy, they are increasingly worried that economic conditions elsewhere could also be weakening, the report said.
Some experts said the August decline was significant and did not appear to be merely a temporary fluctuation.
"I never would make too much of one month's change, but this was a large one and it was mostly on current conditions. I consider that more important, because it reflects what people are seeing, not what they hear in the news or on social media. It also is more likely to directly affect their behavior," Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research, told Xinhua.
"So, this does raise concerns about a slowing of consumer spending going into the fall, which would weaken growth further," Baker said.
The report came ahead of November's midterm elections, as inflation that took hold during the previous administration continues to weigh on household budgets. The economic concerns reflected in the survey could add to the challenges facing Republicans, who control the federal government and are seeking to retain their congressional majorities.
Brookings Institution Senior Fellow Darrell West told Xinhua: "Falling consumer sentiment reflects a weakening economy and people's fears about their own financial futures. They are worried about their jobs being taken by AI and seem to be spending less as a result."
"That pessimism suggests people are in a sour mood and likely to penalize the party in charge of government," West said.
Other experts echoed some of those sentiments, saying Republicans could face challenges as the elections approach.
"There is no good news in this report for Republicans to point to. Their best shot now is to find a way to campaign on something besides the economy or the Iran war," Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland, told Xinhua.
"Trump is not helping in the midterms -- not with his policy moves, nor by getting out of the White House enough and campaigning," Ramsay added. ■
