US Consumer Sentiment Dips to 55.1 in September
US consumer sentiment fell to its lowest point in a year, dropping from 58.2 in August to 55.1 in September, according to the University of Michigan Surveys of Consumers. Last September, the index stood at 70.3, highlighting growing unease among households.
Breaking down the numbers: the Current Economic Conditions Index slid to 60.4 from 61.7, while the Index of Consumer Expectations plunged to 51.7, down from 55.9 and far below last year's 74.5. These figures point to a shift from optimism to caution as consumers navigate persistent price pressures.
Tariffs and Inflation Pressure Personal Finances
High prices remain the top concern, with 44 percent of respondents saying inflation is eating into their budgets — the highest level since November 2024. Tariffs also loom large: 60 percent of consumers flagged them as relevant, up from 28 percent in January. Nearly 70 percent believe upcoming inflation will outpace any wage gains, compared with less than 60 percent a year ago.
Rising Job Worries
Concerns about the labor market are intensifying. About 65 percent of consumers expect unemployment to rise, up from 57 percent in July and 35 percent last September. The odds of personal job loss hit their highest mark since March, signaling that workers fear being directly impacted by any slowdown.
Global Ripples
As the US economy enters this cautious phase, global markets and young professionals from G20 nations will be watching closely. Slower US spending could affect export-driven sectors, tech investments, and even travel plans for digital nomads mapping out post-pandemic adventures.
Looking Ahead
Economist Joanne Hsu, director of UM Surveys of Consumers, said that 'robust spending will be difficult to maintain going forward.' For consumers and businesses alike, the challenge will be adapting to tighter wallets and an uncertain economic horizon.
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U.S. consumer sentiment drops in September on inflation, job worries
cgtn.com
