Consumer sentiment in the U.S. deteriorated more than expected in early September

Consumer sentiment in the U.S. deteriorated in early September, and the decline was more severe than economists had anticipated.

The University of Michigan's index fell to 47.8 points in September from 51.7 points in August, according to preliminary data from the Surveys of Consumers. Experts surveyed by Reuters had forecast a less pronounced decline—to 51.0 points.

“Given the renewed rise in oil prices and tensions in global trade, consumers expect to feel greater pressure on their wallets in the near future,” said Joanne Shue, director of Surveys of Consumers (as quoted by Reuters).

A survey showed that sentiment has worsened among supporters of both the Democratic and Republican parties, while the views of independent voters have remained virtually unchanged.

At the same time, Americans’ inflation expectations rose. The forecast for price growth over the next 12 months jumped to 4.6% from 4% in August. By comparison, in February—before the start of the U.S. war against Iran—this figure stood at 3.4%. Expectations for the next five years rose less significantly—to 3.4% from 3.3% in August.

Midterm elections for Congress will be held in the U.S. in November. Democrats are confident they can take the majority in the House of Representatives away from the Republicans, Politico reported. But control of the Senate—which once seemed out of reach for the Democratic Party— is no longer so far out of reach, given the decline in popularity of Republican President Donald Trump amid the conflict with Iran and rising prices for oil and petroleum products, the publication noted.

This article was AI-translated and verified by a human editor