U.S. September University of Michigan Consumer Sentiment Drops to 48.1, Lowest in 4 Months

Consumer confidence in the U.S. economy declined due to the burden of high inflation and concerns over an economic slowdown.

The University of Michigan announced on the 25th (local time) that the final reading of the September Consumer Sentiment Index, which reflects consumer confidence in the economy, came in at 48.1.

Although it rose from the preliminary estimate of 47.8 announced earlier, it fell 7.0% from the previous month (51.7), marking the lowest level in four months since May.

The current economic conditions index, which reflects the current economic situation, fell from 51.9 in August to 50.9 in September, while the consumer expectations index, representing future outlooks, dropped from 51.5 to 46.3 over the same period.

Concerns over inflation also grew.

U.S. consumers' one-year-ahead expected inflation jumped from 4.0% in August to 4.6% in September, reaching the highest level since June.

This significantly exceeds the 3.4% recorded in February before the outbreak between the U.S. and Iran.

The five-year expected inflation, which reflects consumers' long-term inflation outlook, also rose from 3.3% to 3.4% over the same period.

Joanne Hsu, the director of the survey, said, "Concerns over high prices continue to grow," adding, "Conditions for purchasing durable goods improved somewhat, driven by the spreading perception that buying now could help avoid future price increases."

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.