Consumer Sentiment Dips to 4-Month Low Amid Economic Worries, Survey Shows

11:55 AM EDT, 09/12/2025 (MT Newswires) -- US consumer sentiment deteriorated to the lowest level since May, reflecting concerns over increasing economic risks and threats to personal finances, preliminary results from a University of Michigan survey showed Friday.

The main sentiment index fell to 55.4 in September from 58.2 in August. The consensus was for a 58 reading in a Bloomberg-polled consensus.

"Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Surveys of Consumers Director Joanne Hsu said in a statement. "Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month."

The gauge for current economic conditions ticked down 0.8% to 61.2, while the expectations measure tumbled 7.3% to 51.8, the survey results showed. Both were at four-month lows.

Year-ahead inflation expectations held steady at 4.8, while the long-run outlook climbed to a three-month high of 3.9% from 3.5% in August, the survey showed.

Official data on Thursday showed consumer inflation accelerating at the fastest pace in seven months in August, while the annual core rate remained above 3%.

A survey by the Federal Reserve Bank of New York showed Monday that the expectation of finding a new job in the US hit a record-low level in August. Last week, data showed the US economy added fewer jobs than projected last month as the unemployment rate ticked up.

US economic activity and employment levels were little changed since July, while firms in most Fed districts expected price increases to continue in the coming months, the central bank said in its latest Beige Book released on Sept. 3.

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