University of Michigan Releases Final Results of Its Consumer Sentiment Index for September

On Friday, the University of Michigan released the final results of its Surveys of Consumers for September.

• The Index of Consumer Sentiment fell to a reading of 48.1 in September, down 7.0% from 51.7 in August. Year-over-year, the index was down 12.7% from 55.1 in September 2025.
• Current Economic Conditions fell to a reading of 50.9 in September, down 1.9% from 51.9 in August and 15.7% from 60.4 in September 2025.
• The Index of Consumer Expectations fell to 46.3 in September, down 10.1% from 51.5 in August and 10.4% from 51.7 in September 2025.

In remarks accompanying the release, Surveys of Consumers Director Joanne Hsu said:

“Consumer sentiment ticked down less than four index points in September, reaching the lowest reading in four months and down 15% from January 2026. Views of current and year-ahead expected personal finances both weakened about 10% this month, with concerns over high prices continuing to climb. Buying conditions for durables improved a bit, in part due to a perception that completing such purchases now would help consumers avoid higher prices in the future. The short-run outlook for business conditions plunged amid renewed worries that elevated fuel prices and re-escalating trade disputes could pass through to the economy as a whole. Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year. After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026; Democrats are down 13% over the same period.

Year-ahead inflation expectations jumped from 4.0% last month to 4.6% this month, the highest reading since June. The current reading substantially exceeds the 3.4% seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations ticked up to 3.4%, ending three consecutive months at 3.3%. These expectations remain higher than their 2024 range of 2.8–3.2%.”