U.S. consumer sentiment falls to four-month low in September

U.S. consumer sentiment fell to a four-month low in September as worries about high prices continued to grow, the University of Michigan Surveys of Consumers showed on Friday, Reuters reports.

The final Consumer Sentiment Index dropped to 48.1 points from 51.7 in August — the weakest reading in four months. The figure was slightly better than the preliminary reading of 47.8 and above economists’ forecast of 47.6. Compared with January, the index is now 15% lower.

Consumers’ assessments of current conditions, as well as expected personal finances for the coming year, both weakened by around 10%, while worries about high prices continued to rise.

Consumers’ one-year inflation expectations climbed to 4.6% from 4.0% in August. Twelve-month expectations have risen markedly from 3.4% in February, before the U.S.-Israel war with Iran began. Expectations for the next five years edged up to 3.4% from 3.3%.

Surveys of Consumers Director Joanne Hsu said there is broad agreement across the political spectrum that the economic outlook has weakened since the start of the year. Republican sentiment is now 20% lower than in January 2026, while Democratic sentiment has fallen 13%, she added.