Consumers expect prices to rise at an annual rate of 2.7% over the next year,

The Conference Board's gauge of consumer sentiment hit a six-month high in August.

Initial claims fell by 17,000 last week, in part because of a drop in Michigan, Missouri, and Texas, states that had registered large increases in unemployment applications in prior weeks.

Recent data indicates the labor market is cooling, but it's been gradual through slower hiring rather than outright job cuts.

Last week's 187,000 initial applications for unemployment benefits reflect the lowest level for that metric since September 2022.