US Consumer Sentiment Falls to 4-Month Low

The University of Michigan consumer sentiment for the US dropped to 55.4 in September 2025, down from 58 in August and well below market expectations of 58, according to preliminary estimates. This marked the second consecutive monthly decrease, pushing sentiment to its lowest level since May, with declines strongest among lower- and middle-income households. Buying conditions for durable goods improved, but other components weakened as concerns grew over business conditions, jobs, and inflation. Personal finance views fell 8%, while about 60% of respondents still cited tariffs as a key issue. The current conditions index deteriorated to 61.2 from 61.7, and the expectations gauge fell to 51.8 from 55.9. Meanwhile, year-ahead inflation expectations held steady at 4.8% while the five-year expectations moved up for the second straight month to 3.9% from 3.5%.