Economic Optimism Falls For First Time In 3 Months—As Republican Sentiment Nears 2-Year Low

The University of Michigan survey showed U.S. economic optimism unexpectedly falling in August, ending two months of improvement after the Iran-war backdrop weighed on sentiment to a record low. Republican sentiment dropped to its weakest level in nearly two years. Overall, the data signals a growing consumer pessimism risk for the near-term outlook.

Analysis

The University of Michigan survey showed U.S. economic optimism unexpectedly falling in August, ending two months of improvement after the Iran-war backdrop weighed on sentiment to a record low. Republican sentiment dropped to its weakest level in nearly two years. Overall, the data signals a growing consumer pessimism risk for the near-term outlook.