NEW YORK, Sept. 11 (Xinhua) -- The U.S. Index of Consumer Sentiment slipped to 47.8 in September 2026, according to a preliminary reading released Friday by the University of Michigan (UM) Surveys of Consumers, down from the final reading of 51.7 in August 2026 and from the final reading of 55.1 in September 2025.
This is the second consecutive month consumer sentiment has receded.
The preliminary reading of the Current Economic Conditions Index dropped to 50.9 in September, down from the final reading of 51.9 in August as well as from last September's final reading of 60.4. The Index of Consumer Expectations plunged to 45.8, down from the final reading of 51.5 in August and from last September's 51.7.
Year-ahead inflation expectations jumped from 4 percent in August to 4.6 percent in September, the highest reading since June, said UM economist Joanne Hsu, director of the surveys. "The current reading substantially exceeds the 3.4 percent seen in February before the Iran conflict began, along with all 2024 readings."
Long-run inflation expectations also ticked up to 3.4 percent, ending three consecutive months at 3.3 percent, Hsu said.
The survey finds that both Democrats and Republicans posted sizable declines. With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come. Year-ahead expectations for both personal finances and business conditions plunged, she said.
Overall, U.S. sentiment is now 16 percent below February, prior to the start of the Iran conflict, and 13 percent lower than a year ago, Hsu said.
