U.S. Consumer Sentiment Deteriorates Much More Than Expected In September
(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. has deteriorated by much more than anticipated in the month of September.
The University of Michigan said its consumer sentiment index slumped to 47.8 in September after tumbling to 51.7 in August. Economists had expected the index to edge down to 51.0.
The report said the index of consumer expectations dove to 45.8 in September from 51.5 in August, while the current economic conditions index dipped to 50.9 in September from 51.9 in August.
"Year-ahead expectations for both personal finances and business conditions plunged," said Surveys of Consumers Director Joanne Hsu. "With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come."
She added, "Five-year expected business conditions remained stable at readings well below their historical average, suggesting that consumers believe that emerging risks this month may not have further worsened the long-run outlook."
The report also showed a sharp increase in year-ahead inflation expectations, which surged to 4.6 percent in September from 4.0 percent in August.
Year-ahead inflation expectations reached the highest reading since June and substantially exceed the 3.4 percent seen before the Iran conflict began in February, along with all 2024 readings.
The University of Michigan said long-run inflation expectations also ticked up to 3.4 percent in August after three consecutive months at 3.3 percent. Long-run inflation expectations remain higher than their 2024 range of 2.8 percent to 3.2 percent.
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