US Consumer Sentiment Falls to 48.1, Second-Lowest on Record as Gas Prices Climb
Updated
Updated · CNN · Sep 25
US Consumer Sentiment Falls to 48.1, Second-Lowest on Record as Gas Prices Climb
3 articles · Updated · CNN · Sep 25
Summary
September sentiment fell 7% from August to 48.1, the University of Michigan said, leaving the gauge at its second-lowest reading since records began in 1952 and nearly 13% below a year earlier.
High gasoline and diesel prices drove much of the drop, economists said, as the US-Israeli war with Iran disrupted oil supplies and added to inflation already lifted by tariffs.
Consumers also turned more worried about prices ahead: year-ahead inflation expectations jumped to 4.6% from 4.0% in August, while five-year expectations rose to 3.4%.
The weak reading spanned party lines, with Republican sentiment down 20% and Democratic sentiment down 13% since January, underscoring broad frustration over personal finances and the wider economy.
Those inflation expectations matter for the Federal Reserve, which raised interest rates earlier this month for the first time in three years amid concern that higher expected inflation can become self-reinforcing.