The University of Michigan’s consumer sentiment index inched up to 48.1 in September 2026 from a preliminary reading of 47.8, but remained close to historically weak levels. Assessments of both current and year-ahead personal finances deteriorated by roughly 10% over the month, as worries about persistently high prices continued to mount.
Buying conditions for durable goods improved modestly, reflecting in part a growing perception that purchasing now could help households avoid even higher prices in the future. By contrast, the short-term outlook for business conditions worsened sharply, amid renewed fears that elevated fuel costs and intensifying trade disputes could weigh on the broader economy.
Sentiment declined across the political spectrum: Republicans’ confidence has fallen 20% since January, while Democrats’ has decreased 13%. Year-ahead inflation expectations rose to 4.6%, the highest level since June, and five-year expectations ticked up to 3.4% after holding at 3.3% for three consecutive months.
