Univ. of Michigan: Consumer Sentiment Falls To 4Mo. Low


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- U.S. consumer sentiment in September fell to its lowest 
level since May, with the Index of Consumer Sentiment dropping to 55.4, a 
decrease of 4.8% from August's reading of 58.2, according to preliminary data 
from the University of Michigan's Surveys of Consumers released this morning. 
Year-over-year, the index was down 14.7 points, or 21%.

   The Index of Consumer Expectations, which reflects the economic outlook over 
the next 12 months, fell by 4.1 points to 51.8, a 7.3% decrease from August and 
down 30.4% compared to the same month last year. 

   The Current Economic Conditions Index, measuring sentiment about personal 
finances and buying conditions, slipped to 61.2 in September, 0.5 points, or 
0.8%, below the level reported in August and down 3.3% year-over-year. 

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

   "Trade policy remains highly salient to consumers, with about 60% of 
consumers providing unprompted comments about tariffs during interviews, little 
changed from last month. Still, sentiment remains above April and May 2025 
readings, immediately after the initial announcement of reciprocal tariffs," 
Hsu continued.




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