Consumer Sentiment Slides to Second-Lowest Level
The University of Michigan index dropped to 47.8 in September. Inflation expectations and fuel costs drove the decline.
Consumer sentiment fell to 47.8 in September. The University of Michigan index dropped 7.5% from August. This marks the second-lowest reading on record.
Inflation expectations for the next year rose to 4.6%. The one-year outlook increased by 0.6 percentage points. This is the highest level since June.
Fuel Prices Drive Cost Pressures
Gasoline prices rose 3.9% in August. Annual gasoline inflation reached 27.4%. Fuel oil costs jumped 10.1% in the same period.
Survey director Joanne Hsu linked the drop to fuel costs. She noted a resurgence in prices is hitting pocketbooks. Trade tensions also contribute to the pressure.
Market Expectations Shift Toward Rate Hikes
Traders see a Federal Reserve rate hike as likely. Odds rose past 85% after new data. The annual inflation rate stands at 3.4%.
This figure is above the 2% target. The current conditions index fell 1.9% from last month. Expectations for personal finances also declined sharply.
Historical Context of the Decline
The current reading is below the May low. Data collection began in 1952. The survey tracks changes in consumer outlook monthly.
GN markets/inflation (en-US) reported the index movement. The decline reflects broader economic anxiety. Businesses and individuals face similar financial pressures.
