Beef products are sold at a grocery store in Chicago, Illinois, on September 10, 2026.
Scott Olson | Getty Images
A monthly survey from the University of Michigan released Friday showed consumer sentiment plummeted in September to its second-lowest level on record as inflation concerns grew.
The survey’s overall index reached a level of 47.8, a decline of 7.5% from the August reading and a decline of 13.2% year-on-year. This was the second-lowest reading since 1952, and the bottom had come in May, with rising prices also shaking the outlook.
“Predictions for the previous year for both personal finances and the economy have plummeted,” said research director Joan Hsu. “Consumers expect further pressure on their pockets going forward due to a resurgence in fuel prices and trade tensions.”
In fact, the one-year inflation outlook rose to 4.6%, up 0.6 percentage points from previous levels and the highest since the same level was recorded in June.
The current situation index of the survey decreased by 1.9% from the previous month, and the expected index decreased by 11.1%.
Gasoline prices rose 3.9% in August, up 27.4% from a year earlier, according to Bureau of Labor Statistics data released Friday. Fuel oil prices soared 10.1%, up 52% for the year.
Traders are now all but certain that the Federal Reserve will raise interest rates next week, with odds rising to more than 85% on Friday after the BLS put the consumer price index inflation at an annual rate of 3.4%, well above the central bank’s 2% target.
