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last mo.

U.S. Consumer Sentiment Drops to 55.4 as Tariff Worries Persist

Tariff concerns keep inflation expectations stubbornly high.

A woman shops for lettuce at the Mid-Ohio Market at Norton, a modern food pantry designed to replicate a grocery store experience, in Columbus, Ohio, U.S., May 13, 2025. REUTERS/Evelyn Hockstein/File Photo
A delivery worker pushes a cart of packages.
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The Federal Reserve Bank of New York said a recent poll showed that confidence in landing a new job hit a record low with a perceived probability of finding a new job in the next three months at 44.9%. That's the lowest since it started asking about the subject in 2013. (LM OTERO/AP FILE)

Overview

  • The University of Michigan index fell to 55.4 in September from 58.2 in August, the lowest since May and below the Reuters forecast of 58.0.
  • Survey director Joanne Hsu reported rising perceived risks to business conditions, the labor market and inflation.
  • Measures of current and expected personal finances each declined about 8% in September.
  • Year-ahead inflation expectations held at 4.8% while five-year expectations rose to 3.9% from 3.5%.
  • About 60% of respondents mentioned tariffs unprompted, and recent data showing hotter inflation and softer hiring has led some economists to warn of stagflation as markets place high odds on a Fed rate cut next week.