Mubasher: Preliminary figures by the University of Michigan suggested that the US consumer sentiment deteriorated during the first half of August, recording the worst reading since the beginning of this year, amidst uncertainty regarding monetary and trade policies.

The consumer sentiment index dropped to 92.1 points in early August, compared with 98.4 in July, a survey report by Michigan University revealed on Friday.

“Consumers strongly reacted to the proposed September increase in tariffs on Chinese imports,” survey chief economist Richard Curtin said.

“Although the announced delay until Christmas postpones its negative impact on consumer prices, it still raises concerns about future price increases,” Curtin added.

Assessment of current economic conditions worsened, with the gauge falling to 107.4 points month-on-month in early August, and it dropped by 2.6% from the estimate for the same month last year. This marked the lowest level observed since late 2016.

Expectation index plunged by 9.1% month-on-month to 82.3 points earlier this month from 90.5, while the index recorded a 5.5% year-on-year drop.

By 2:01 pm GMT, the US dollar index rose by 0.15% to 98.29.