WASHINGTON—U.S. consumer sentiment fell in September, slipping to a four-month low as Americans reported mounting pressure from high prices and job-market uncertainty, Bloomberg reported.
The University of Michigan’s final sentiment index dropped to 55.1 from 58.2 in August. Survey director Joanne Hsu said 44% of respondents spontaneously cited inflation as cutting into their finances—the highest share in a year.
Households expect prices to rise 4.7% over the next year, a slight improvement from earlier readings, though long-term inflation expectations edged higher. Confidence declined across most income groups but held steady among wealthier households with large stock holdings, reflecting the market’s resilience.
Despite the weaker outlook, inflation-adjusted consumer spending expanded for a third straight month, underscoring the economy’s reliance on household demand. The report, covering responses through Sept. 22, points to a complicated backdrop for the Federal Reserve as it balances slowing job and income growth with persistent inflation.