Michigan Consumer Sentiment Nears Record Low in September

The University of Michigan’s final consumer sentiment index fell to 48.1 in September, its second-lowest reading on record, as consumers’ expectations for inflation rose. The index was down from 51.7 in August and 55.1 a year earlier, though it was slightly above the preliminary September reading of 47.8. The survey, which dates to 1952, recorded its lowest reading in May. The four weakest results in its history have all occurred within the past six months, according to the reported figures. September’s result was the lowest in four months and reflected worsening views of personal finances and the broader economic outlook. The survey’s director, Joanne Hsu, said year-ahead inflation expectations climbed to 4.6% from 4.0% in August, while expectations for inflation over the next five years edged up to 3.4%. The longer-term figure followed three months at 3.3% and exceeded the range recorded in 2024, the survey report said. Hsu said interviews showed broad agreement across political groups that the economic outlook had weakened since the beginning of the year. The index’s decline reflected a worsening outlook as well as concerns about current and expected personal finances.