Consumer Sentiment Fell in September, According to University of Michigan Survey

By Matt Grossman

Views on the economy dropped this month as worries about high prices and the labor market weighed on household sentiment, the University of Michigan's consumer survey found.

The monthly survey's sentiment index fell to 55.1 in September, from 58.2 in August. An early September estimate had shown the index declining to 55.4.

The monthly decline sees sentiment sliding back toward a low touched in April, when the initial rollout of President Trump's steep bilateral tariffs darkened the economic outlook. Lately, consumers have cited the labor market as another concern, as hiring sputters and job creation has tumbled to a far lower monthly rate than earlier in the year.

"Although September's decline was relatively modest, it was still seen across a broad swath of the population, across groups by age, income and education, and all five index components," survey director Joanne Hsu said. One exception she noted: consumers with large stock portfolios, whose sentiment held up better.

Consumers are still wary of price increases ahead. In the Michigan survey, 12-month inflation expectations edged a tad lower but remained elevated, and long-run inflation forecasts ticked higher. Still, inflation jitters have nonetheless eased somewhat since the spring.

Write to Matt Grossman at matt.grossman@wsj.com

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September 26, 2025 10:24 ET (14:24 GMT)