US Consumer Sentiment Falls to 48.1, Near Record Low as Gas Hits $4.49
Updated
Updated · abcnews.com · Sep 25
US Consumer Sentiment Falls to 48.1, Near Record Low as Gas Hits $4.49
3 articles · Updated · abcnews.com · Sep 25
Summary
The University of Michigan’s final September sentiment index came in at 48.1, the second-lowest reading in the survey’s 74-year history and down from 51.7 in August.
Prices drove the drop: August inflation ran at 3.4%, well above the Fed’s 2% target, while average US gasoline prices reached $4.49 a gallon—about 50% higher since the Iran war began.
Consumers now expect faster inflation over the next year and report a weaker personal financial outlook, with sentiment falling sharply among both Democrats and Republicans.
Higher prices are already feeding through markets and borrowing costs: a key long-term Treasury yield hit its highest level in nearly two decades, and traders see a two-in-three chance of another quarter-point Fed hike next month.
The slump in confidence comes even as the broader economy still shows resilience, with employers adding 162,000 jobs in August and output growing in the three months through June.