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.