MIC: Consumer confidence slips in August, big-ticket buying signals mixed
The Motorcycle Industry Council (MIC) is highlighting two major consumer sentiment reports released in August that indicate ongoing caution among U.S. households, a trend that dealers should monitor as the fall selling season approaches.
The University of Michigan’s Index of Consumer Sentiment fell to 58.2%, down from 61.7% in July. While confidence remains stronger than it was earlier this year, it is still well below 2024 levels. Buying conditions for durable goods — which include motorcycles, ATVs, and other powersports vehicles — dropped to their weakest point in a year, largely due to persistent concerns about prices.
Inflation expectations also increased, with consumers now anticipating short-term inflation at 4.8%, up from 4.5% in July. Long-term inflation expectations edged up to 3.5%.
The Conference Board’s Consumer Confidence Index also softened, slipping from 98.7% in July to 97.4% in August. Still, more consumers reported optimism about future business conditions, and vehicle-buying plans improved slightly. Discretionary spending on categories such as entertainment and travel trended lower.
Dealer Takeaway: While broad sentiment remains subdued, interest in vehicles hasn’t disappeared. Consumers may be holding back on extras but are still weighing larger purchases, which could support powersports sales if dealers address affordability concerns and highlight long-term value.
This report is based on coverage from the Motorcycle Industry Council’s RideReport.
