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- The University of Michigan’s Survey of Consumers showed a 47.8 reading in September, down 7.5% from a month ago to the second lowest level on record.
- One-year inflation expectations jumped to 4.6% amid a surge in energy prices.
Beef products are offered for sale at a grocery store on Sept. 10, 2026 in Chicago, Illinois. Scott Olson | Getty Images
Consumer sentiment plunged in September amid heightened inflation fears, hitting its second lowest level on record on the University of Michigan’s monthly survey released Friday.
The survey’s headline index hit a level of 47.8, down 7.5% from the August reading and off 13.2% from a year ago. This was the second lowest reading on record for data going back to 1952 — the bottom coming in May as rising prices also jolted the outlook.
“Year-ahead expectations for both personal finances and business conditions plunged,” survey director Joanne Hsu said. “With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come.”
Indeed, the one-year inflation outlook surged to 4.6%, up 0.6 percentage point from the prior level and the highest since hitting the same level in June.
The current conditions index in the survey fell 1.9% from the prior month, while the expectations measure tumbled 11.1%.
Bureau of Labor Statistics data also out Friday showed gasoline prices rose 3.9% in August and were up 27.4% from a year ago. Fuel oil prices soared 10.1% and were up 52% annually.
Traders now see a Federal Reserve rate hike next week as a near certainty, with odds rising past 85% Friday after the BLS released its consumer price index showing inflation at 3.4% annually, far above the central bank’s 2% target.
