Trade tensions, high prices and interest rates drive slip in consumers' outlook
Consumer sentiment fell by less than four index points in September, reaching its lowest reading in four months and down 15% from January 2026, according to the University of Michigan Surveys of Consumers.
Consumer confidence took a hit in September, reaching its lowest point in four months and a 15% decline since January 2026, according to the University of Michigan Surveys of Consumers. Both immediate and future personal financial outlooks showed declines, with worries about high prices continuing to rise. Economists noted that concerns about fuel prices and trade disputes could have broader economic implications.
About 55% of consumers cited high prices as a negative factor for their finances, up from 53% last month and 44% a year ago. Gasoline prices emerged as a major concern, with 31% of consumers expecting them to keep climbing. Trade tensions also weighed on consumers, with unsolicited comments about tariffs increasing for the second month in a row.
Rising interest rates further pressured consumers, impacting both home and vehicle buying conditions. The decline in sentiment was evident across political affiliations, with Republicans experiencing the steepest drop. The Consumer Sentiment Index fell to 48.1 in September 2026, down from 51.7 in August and below last September's 55.1.
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