Preliminary: Consumer sentiment fell 2.8 points in September

Consumer sentiment edged down 2.8 points in September to 55.4, down 14.7 points from one year ago, according to preliminary results of the University of Michigan Surveys of Consumers. The Current Economic Conditions Index remined little change, edging down 0.5 points from the previous month to 61.2, 2.1 points from the previous year. The Consumer Expectations Index decreased 4.1 points to 51.8, 22.6 points lower than the September 2024 Index.

Consumer sentiment moved down less than three index points in early September. This month’s easing in economic views was particularly strong among lower- and middle-income consumers. Buying conditions for durables improved, while all other index components fell. Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation. Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month. Still, sentiment remains above April and May 2025 readings, immediately after the initial announcement of reciprocal tariffs.

Year-ahead inflation expectations held steady at 4.8%, unchanged from August. Long-run inflation expectations moved up for the second straight month to 3.9% in September. This current reading is considerably lower than the 4.4% seen in April.

Read the University of Michigan Surveys of Consumers release.