The University of Michigan's preliminary survey shows consumer sentiment declining for a second month. Expectations for personal finances and business conditions weakened, while expected inflation over the coming year rose to 4.6%. Fuel prices and trade tensions weighed on assessments. Final September results are due on 25 September; the current figures remain preliminary.
The University of Michigan's preliminary US consumer sentiment index registered 47.8 in September, a 7.5% decline from August's final reading of 51.7. It was the second consecutive monthly decrease. The component measuring current economic conditions fell to 50.9, while the expectations component declined to 45.8. The preliminary results cover consumers' assessments of their present circumstances as well as their outlook.[1], [2]
Households' expectation for inflation over the next year rose from 4.0% in August to 4.6%, the highest reading since June. The five-to-ten-year expectation increased from 3.3% to 3.4%. These figures describe how much consumers think prices will rise. They measure expectations reported in the survey, rather than the inflation rate already observed in actual price data.[1]
Survey director Joanne Hsu links anticipated pressure on household budgets to renewed fuel-price increases and trade tensions. Year-ahead assessments of personal finances and business conditions weakened. Both Democratic and Republican respondents recorded sizable declines, while independents changed little from August. The university will publish final September results on 25 September, completing the month's reading after this preliminary release.[1]
