WASHINGTON: U.S. consumer sentiment deteriorated in early September as rising gasoline prices and trade tensions stoked fears of higher inflation over the next 12 months, a survey showed on Friday.The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to 47.8 this month from 51.7 in August. Economists polled by Reuters had forecast the index at 51,0. Sentiment sagged among consumers identifying as Democrats and Republicans, but was little changed among Independents."With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come," said Joanne Hsu, the director of the Surveys of Consumers.The survey's measure of consumer expectations for inflation over the next year jumped to 4.6% from 4.0% last month. Twelve-month inflation expectations were at 3.4% in February before the U.S.-led war with Iran started. Consumers' expectations for inflation over the next five years edged up 3.4% from 3.3% in August. They are higher than their 2024 range of 2.8% to 3.2%.
US consumer sentiment deteriorates in September, inflation expectations rise
US consumer sentiment declined in early September as fuel prices rose. Trade tensions also contributed to fears of increased inflation over the next year. The University of Michigan's sentiment index dropped to 47.8 this month. Consumers anticipate greater financial pressures on their pocketbooks in the coming months. Inflation expectations for the next year jumped significantly from the previous month.
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