US consumer sentiment falls to four-month low as inflation worries rise
The University of Michigan’s final September Consumer Sentiment Index slipped to 48.1 from 51.7 in August. Year-ahead inflation expectations jumped to 4.6%, and views of personal finances weakened across the political spectrum, Reuters and U-M reported.
US consumer sentiment eased to a four-month low in September as households grew more concerned about inflation and their personal finances, according to the University of Michigan’s final reading reported by Reuters on 25 September.
Index slips below August
The Consumer Sentiment Index finished September at 48.1, down from 51.7 in August. The preliminary September figure had been 47.8. A Reuters poll had forecast 47.6. The index is about 15% lower than in January.
Personal finances and inflation
Assessments of current and year-ahead personal finances each weakened by roughly 10%. Year-ahead inflation expectations rose to 4.6% from 4.0% in August; they had been 3.4% in February before the US-Israeli war with Iran. Five-year inflation expectations stood at 3.4%, after three months at 3.3%.
Broad political agreement on a weaker outlook
Survey director Joanne Hsu said there was broad agreement across the political spectrum that the outlook had weakened since the start of the year. Republican sentiment was about 20% lower than in January 2026; Democratic sentiment was down about 13%.
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