Overview

• The University of Michigan index fell to 55.1 from 58.2 in August, down 21.6% from a year earlier and at its lowest since May.
• Survey data show 44% of respondents say high prices are eroding their finances, with inflation still above the Fed’s 2% target based on CPI at about 2.9% and the PCE gauge at 2.7%.
• Perceptions of the job market deteriorated as 65% expect unemployment to rise, aligning with softer data that showed a 22,000 job gain in August and a 4.3% unemployment rate.
• Sentiment held steady for households with larger stock holdings but fell for those with smaller or no equity exposure as major indexes hovered near record highs.
• Political and asset-based splits widened, with declines for Independents and Republicans and an uptick for Democrats, while economists caution that uncertainty could delay big-ticket purchases such as homes.