US consumer confidence weakens as inflation fears rise

Anabelle Colaco
29 Sep 2026, 19:19 GMT+10

Americans grew more concerned about their finances and rising prices in September, pushing consumer sentiment to its lowest level in four months as expectations for inflation increased
The University of Michigan’s Consumer Sentiment Index fell to a final reading of 48.1 from 51.7 in August
Consumer sentiment is now 15 percent below its January level, according to the university’s Surveys of Consumers

WASHINGTON, D.C.: Americans grew more concerned about their finances and rising prices in September, pushing consumer sentiment to its lowest level in four months as expectations for inflation increased, a survey showed.

The University of Michigan's Consumer Sentiment Index fell to a final reading of 48.1 from 51.7 in August. The September figure was slightly higher than the preliminary reading of 47.8 and above the 47.6 forecast by economists polled by Reuters.

Consumer sentiment is now 15 percent below its January level, according to the university's Surveys of Consumers.

The survey found that consumers' assessments of their current personal finances and their expectations for the year ahead both weakened by about 10 percent. Concerns about high prices also continued to increase.

"Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year," said Joanne Hsu, director of the Surveys of Consumers. "After particularly large declines in sentiment this month, Republican sentiment is now 20 percent lower than January 2026. Democrats are down 13 percent over the same period."

Expectations for inflation over the next year rose to 4.6 percent in September from 4.0 percent in August. They have climbed from 3.4 percent in February, before the U.S.-Israeli war with Iran began.

Consumers' expectations for inflation over the next five years also edged higher, reaching 3.4 percent after remaining at 3.3 percent for three consecutive months.