US consumer sentiment slips again in September, University of Michigan survey says

Core Insights - U.S. consumer sentiment declined for the second consecutive month in September, with the Consumer Sentiment Index dropping to 55.4 from 58.2 in August, marking the lowest level since May [1] - Economists had anticipated a reading of 58.0, indicating a more pessimistic outlook than expected [1] Economic Vulnerabilities - Consumers are increasingly aware of vulnerabilities in the economy, particularly regarding business conditions, labor markets, and inflation [2] - Current and expected personal finances have decreased by approximately 8% this month, reflecting concerns about economic stability [3] Inflation Expectations - The survey indicated that consumer expectations for inflation over the next year remained steady at 4.8%, while expectations for inflation over the next five years increased from 3.5% to 3.9% [3] - Trade policy, especially tariffs, continues to be a significant concern for consumers, with around 60% mentioning tariffs during interviews [3] Overall Economic Sentiment - Households have expressed a generally negative outlook on the economy for 2025, primarily due to fears that aggressive tariff measures by the government will lead to higher goods prices and reduced purchasing power [4]