Michigan Consumer Sentiment Index Declines More Than Expected in Preliminary September Survey

10:14 AM EDT, 09/12/2025 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index fell to 55.4 in September from 58.2 in August, below expectations for a smaller decrease to 58.0 in a survey compiled by Bloomberg as of 7:45 am ET.

The current conditions index declined to 61.2 in September from 61.7 in August, while the expectations reading decreased to 51.8 from 55.9.

Michigan said consumer sentiment decreased slightly, especially among lower and middle-income households, due to concerns about risk to labor markets, inflation, business conditions and personal finances, with both current and expected financial outlooks dropping by around 8%.

Respondents saw one-year inflation expectations at 4.8%, same as in August, while five-year inflation expectations rose to 3.9% from 3.5%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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