Story perspectives

U.S. Consumer Sentiment Plummets Amid Economic Worries

9/14/2025

Summary

Story summary

U.S. consumer sentiment dropped 4.8% in September to 55.4, the lowest since May.
The University of Michigan's survey reveals growing concerns about the economy, labor markets, and inflation.
Approximately 60% of consumers cited tariffs, indicating increased anxiety over trade policies.
Lower- and middle-income households reported notable declines in economic outlook.
Year-ahead inflation expectations held steady at 4.8%, while long-term expectations rose to 3.9%.

History

Historical Context

The Great Recession of 2008 significantly impacted U.S. consumer confidence, which fell to a low of 55.4 in September 2023, as reported by the University of Michigan. This decline mirrors past economic anxieties, with around 60% of consumers expressing concerns over trade policies and tariffs, particularly affecting lower- and middle-income households, complicating prospects for economic recovery.

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Story summary

U.S. consumer sentiment dropped 4.8% in September to 55.4, the lowest since May.
The University of Michigan's survey reveals growing concerns about the economy, labor markets, and inflation.
Approximately 60% of consumers cited tariffs, indicating increased anxiety over trade policies.
Lower- and middle-income households reported notable declines in economic outlook.
Year-ahead inflation expectations held steady at 4.8%, while long-term expectations rose to 3.9%.

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