US consumer sentiment fell to a four-month low in September as concerns about rising prices and the economic outlook intensified.
According to a survey released on Friday, the final reading of the University of Michigan's September consumer sentiment index dropped to 48.1.
Consumers expect prices to rise 4.6% over the next year, up from the 4% expected last month. At the same time, they anticipate an annualized inflation rate of 3.4% over the next five to ten years, the highest level since May.
Consumer sentiment deteriorated in September as diesel prices hit record highs and gasoline prices continued to climb. Rising pump prices have deepened workers' long-standing dissatisfaction with the persistently high cost of living in the United States.
Inflation remains stubbornly elevated. Prices are rising faster than wages, and mortgage rates have surged above 7%, making it harder for many people to achieve their goal of homeownership.
"Despite political divisions, consumers across the board agree that the economic outlook has worsened," survey director Joanne Hsu said in a statement.
The report showed that since the start of the year, consumer sentiment has declined across all groups regardless of age, education level, region, political affiliation, or income level.
The gauge assessing the economic outlook for the coming year fell in September to its lowest level since 2022. Consumers' expectations for their personal financial situations also deteriorated.
Buying conditions for durable goods improved slightly, but this was partly "because people believe completing purchases now will help them avoid future price increases," Hsu said.
The consumer expectations index fell to a four-month low, while the current conditions index also declined.
The survey period covered responses collected between August 25 and September 21.
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