US consumer confidence drops to three-month low, economic outlook turns dimmer.

Due to continuing concerns about tariffs, the consumer confidence index in the United States has dropped to a three-month low, with pessimistic sentiments spreading among the public regarding the economic outlook and inflation. A survey released by the University of Michigan on Friday revealed that the final consumer confidence index for August decreased from July's 61.7 to 58.2, below the preliminary figure of 58.6. The latest data shows that consumers expect prices to increase by 4.8% in the next year, higher than the 4.5% from the previous month; while the annual inflation expectations for the next 5-10 years are at 3.5%, an improvement from the earlier survey's 3.9%. These figures highlight consumers' anxiety about job prospects and business conditions. Around 63% of consumers expect the unemployment rate to rise in the next year, an increase from the previous month and significantly higher than the level in the same period in 2024. The employment report for August, to be released next week, is expected to show moderate job growth once again.