U.S. Consumer Sentiment Declines Again in September, Michigan Survey Shows

U.S. consumer sentiment dropped for the second month in a row this September. Households expressed concerns about business conditions, jobs, and inflation pressures.

Michigan Consumer Sentiment Index Falls

The University of Michigan reported that its Consumer Sentiment Index slipped to 55.4, down from 58.2 in August. This marks the lowest level since May. Economists had expected a reading of around 58.0, showing the decline was sharper than forecast.

Economic Concerns Weigh on Consumers

Joanne Hsu, director of the Surveys of Consumers, noted that Americans are increasingly worried about business conditions, the labor market, and inflation. Personal finances also showed signs of stress. Both current and expected financial conditions weakened by about 8% compared with last month.

Trade policy is also weighing heavily on sentiment. About 60% of consumers mentioned tariffs during interviews, showing that concerns about U.S. trade measures remain strong.

Inflation Expectations Rise

The survey found that one-year inflation expectations held steady at 4.8%. However, five-year inflation expectations climbed to 3.9%, up from 3.5% in August.

Tariffs and Economic Outlook

Throughout 2025, households have stayed cautious about the economy. Many fear that President Donald Trump’s tariff policies could push up prices and reduce purchasing power. This ongoing uncertainty continues to dampen overall consumer confidence.