US consumer sentiment deteriorates in September, inflation expectations rise

WASHINGTON: U.S. consumer sentiment deteriorated in early September as rising gasoline prices and trade tensions stoked fears of higher inflation over the next 12 months, a survey showed ‌on Friday.

The ⁠University ⁠of Michigan's Surveys of Consumers said ​its Consumer Sentiment Index dropped to 47.8 this month ​from 51.7 in August. Economists polled by Reuters had forecast the index ​at 51,0. Sentiment sagged among ⁠consumers identifying ‌as Democrats and Republicans, but ​was ​little changed among Independents.

"With ⁠a resurgence in fuel prices and trade ​tensions, consumers anticipate greater pressures on ​their pocketbooks to come," said Joanne Hsu, the director of the Surveys of Consumers.


The survey's measure of consumer expectations for inflation over the next ‌year jumped to 4.6% from 4.0% last month. Twelve-month inflation ​expectations were ​at 3.4% ⁠in February before the U.S.-led war with Iran started. Consumers' expectations for inflation over the ​next five years edged up 3.4% from 3.3% in August. They are higher than their 2024 range of 2.8% to 3.2%.