US consumer sentiment weakens to 48.1 in September

(Sharecast News) - US consumer sentiment weakened in September, according to the University of Michigan, slipping to a four‑month low and leaving the index about 15% below its January level, as households reported softer views on both current and year‑ahead personal finances and growing unease over persistent price pressures. The headline sentiment index fell to 48.1 from 51.7, current conditions eased to 50.9, and expectations dropped to 46.3, marking notable monthly and annual declines across all three measures.

Buying conditions for durable goods improved slightly, helped by a sense that making larger purchases now could avoid further price rises, but the short‑term outlook for business conditions deteriorated sharply amid renewed worries that higher fuel costs and a re‑escalation of trade tensions could weigh on the broader economy.

Survey responses pointed to a broad consensus across political groups that the economic outlook has worsened since the start of the year, with Republican sentiment now 20% lower than in January and Democrats down 13%.

Inflation expectations also moved higher, with year‑ahead expectations jumping to 4.6% from 4.0% in August - the highest reading since June and well above the 3.4% level recorded in February before the Iran conflict began. Long‑run expectations edged up to 3.4%, ending a three‑month run at 3.3% and remaining above last year's 2.8% to 3.2% range.





Reporting by Iain Gilbert at Sharecast.com