University of Michigan index fell to 48.1 in September, its lowest level in four months
Consumer sentiment in the United States fell again in September as concerns about prices, fuel costs and inflation increasingly weighed on how Americans view the economy.
The University of Michigan’s final consumer sentiment index came in at 48.1 this month, down from 51.7 in August.
Compared with January, consumer sentiment has fallen 15%. It is down 12.7% from September of last year.
Inflation worries American consumers
Inflation expectations for the next 12 months rose from 4% in August to 4.6% in September.
That is the highest level since June.
Long-term inflation expectations also edged higher, rising from 3.3% to 3.4%.
The survey also found that consumers’ assessments of their personal finances, both currently and for the year ahead, deteriorated during the month.
Expectations for the economy also weakened
The consumer expectations index fell from 51.5 in August to 46.3 in September.
The index measuring current economic conditions declined from 51.9 to 50.9.
According to the University of Michigan, concerns about high prices and future economic conditions were among the factors influencing the results.
Why consumer sentiment matters
The index helps measure how households view the economy and their own finances.
That perception can influence decisions such as buying a car, replacing appliances, traveling or taking on new loans.
Consumer spending plays a major role in U.S. economic activity, which is why the data are closely watched by economists, businesses and investors.
Source: University of Michigan Surveys of Consumers.
