(Sept 25): US consumer sentiment fell in September to a four-month low amid deepening worries about rising prices and the outlook for the economy.

The University of Michigan’s final sentiment index decreased to 48.1 in September from a month earlier, according to the survey released on Friday.

Consumers expect prices to rise 4.6% over the next year, up from 4% in the previous month. They also saw costs rising at an annual rate of 3.4% over the next five to 10 years, the highest since May.

Consumer sentiment deteriorated in September as diesel prices hit a record and gasoline prices climbed. Higher prices at the pump are exacerbating workers' longstanding frustrations about the cost of living in the US.

Inflation remains stubbornly elevated. Prices are rising faster than paychecks, and mortgage rates have surged above 7%, pushing homeownership even further out of reach for many.

“Despite political differences, consumers unanimously believe that the outlook for the economy has diminished," Joanne Hsu, director of the survey, said in a statement.

Since the start of the year, consumer sentiment has declined for all groups by age, education, geography, political party and income, according to the report.

A gauge of the outlook for the economy in the year ahead slumped in September to the lowest since 2022. Consumers' expectations for their personal finances also deteriorated.

Buying conditions for durable goods improved slightly, but it was partly “due to a perception that completing such purchases now would help consumers avoid higher prices in the future,” Hsu said.

An index of consumer expectations dropped to a four-month low, and the current conditions gauge also fell.

The survey period includes responses from Aug 25 to Sept 21.

Uploaded by Evelyn Chan