Let’s do our own poll. How confident are you about the state of the US economy? Well, there ya go. We had a feeling.
Consumer sentiment dropped in September, while long-term inflation expectations rose, according to a preliminary monthly reading from the University of Michigan.
The confidence index dipped to 55.4, from 58.2 in August. That was lower than the 58.1 economists expected. Meanwhile, consumer expectations about long-term inflation climbed to 3.9%, up from August’s 3.5% reading. In the year ahead, consumers expect prices to climb by 4.8%, unchanged from last month.
“Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation,” Joanne Hsu, the director of the university’s consumer surveys, said in a statement. “Likewise, consumers perceive risks to their pocketbooks as well.”
That isn’t too much of a surprise. In case you haven’t been following along: The consumer sentiment report arrived after a spate of disappointing data for the US economy.
The day before, the Bureau of Labor Statistics reported that consumer prices rose 0.4% in August, with food at home prices rising particularly high.
And last week, August’s jobs report showed the US added just 22,000 jobs for the month. Earlier this week, the BLS revised its prior data, revealing the US added far fewer jobs than previously thought in 2024 and 2025.
So, we’ll ask again: How confident are you about the state of the US economy?
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