CHICAGO, Sept. 29 (Xinhua) -- The Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers fell to 68.1 in the September 2023 survey, down from 69.5 in August but above last September's 58.6.
The Current Index fell to 71.4, down from 75.7 in August but above last September's 59.7. The Expectations Index rose to 66.0, up from 65.5 in August and above last September's 58.0.
Relative to August, a higher share of consumers mentioned high prices as a reason for poor buying conditions for durables and vehicles, as well as the erosion of their living standards. Consumers' mentions of food or gas prices have also risen since June.
Assessments of personal finances declined by about 6 percent as incomes weakened and expenses rose, both factors eroding the living standards of consumers. Signs of rising concerns about income and employment appeared throughout the survey across a variety of demographic groups.
While a majority of consumers expect their incomes to rise next year, consumers believe any income increases will be small and will not keep pace with inflation.
Looking at labor markets more broadly, 36 percent of consumers expected unemployment rates to rise in the year ahead, up from 32 percent in August. Only 16.7 percent believed that unemployment will pose greater problems for the economy than inflation in the upcoming year, the lowest reading since November 2022.
Sentiment has been essentially flat for the past three months, following two months with leaps in sentiment stemming from the substantial slowdown in inflation seen earlier this summer, according to chief economist Joanne Hsu, director of the surveys. While consumers recognize the ongoing strength of labor markets and the improvements in the economy compared with last summer, they remain tentative about whether these improvements can be sustained.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
