Economic Worries Are Rising for Most Americans, But Big Stock Holders Stay Positive

Core Insights - Consumer sentiment declined by approximately 5% in September compared to August, primarily due to concerns about the job market and persistent inflation, although investors with large stock portfolios remained optimistic [2][6]. Consumer Sentiment Index - The University of Michigan's Consumer Sentiment Index fell to 55.1 in September, which is 21% lower than the same month last year, but still above the levels of around 52 recorded in April and May [4][6]. - The decline in sentiment is attributed to rising worries about unemployment, with 65% of respondents expecting job losses, a significant increase from 35% a year ago [5]. Economic Outlook - The sentiment survey indicates a deteriorating financial outlook for consumers, as highlighted by Survey Director Joanne Hsu [5]. - Despite the decline in sentiment, consumer spending remained resilient in August, as indicated by the Personal Consumption Expenditures report [8]. Inflation and Income Growth - Inflation expectations slightly softened, yet 44% of respondents reported that high prices were eroding their personal savings, the highest level since last November [7]. - Slower income growth, combined with high prices, is expected to restrain consumer spending moving forward [8].