Consumers Don't See Bright Future, Says UMich Survey Director

Consumer Sentiment & Inflation Expectations - Consumer views have worsened, reversing some improvements seen earlier, with a worsening outlook for unemployment and inflation [1] - High prices, especially for durable goods, are driving consumer concerns, leading to a pessimistic view of the future [2] - Short and long-run inflation expectations have increased, halting a previous trend of receding expectations, a concern for policymakers [4] - Tariff developments are likely contributing to consumer worries about prices and inflation [5] - A University of Michigan report indicates 58% of consumers plan to cut back on spending [8] - Over 60% of consumers expect unemployment rates to rise, nearly double the rate from the previous year [9] - Consumers lack confidence in their future incomes, making it difficult to sustain robust spending [10] Partisan Views & Interest Rates - Partisan differences persist in economic and inflation views, although both Democrats and Republicans have moderated their expectations from earlier in the year [6][7] - Republicans are more likely to expect interest rates to fall compared to Democrats and Independents [14] - Public rhetoric about rate cuts may be influencing consumer expectations, although consumers generally don't closely follow specific data or FOMC announcements [14]