Consumer sentiment ticked down less than four index points in September, reaching the lowest reading in four months and down 15% from January 2026, according to the University of Michigan Surveys of Consumers.
Views of current and year-ahead expected personal finances both weakened about 10% this month, with concerns over high prices continuing to climb.
"Short-run expected business conditions plunged amid renewed worries that elevated fuel prices and reescalating trade disputes could pass through to the economy as a whole," said U-M economist Joanne Hsu, director of the surveys. "Overall, interviews reveal broad agreement across demographic and political groups that the outlook for the economy has softened over the course of the year."
Pressure grows from high prices and interest rates
Consumers perceive increasing pressure on their costs-of-living both now as well as in the future. About 55% of consumers cited elevated prices as a negative factor for their personal finances, up from 53% last month and 44% a year ago.
After declining for two straight months, spontaneous references to gasoline increased in September to 31% of consumers amid rising fuel prices.
"In fact, consumers do not believe that relief from high gas prices is on the horizon; they broadly expect gasoline prices to continue rising in both the short and long run," Hsu said.
Moreover, the reescalation of trade tensions weighed on consumers this month, as unsolicited comments about tariffs rose for the second month in a row, from 24% in July to 35% in September.
Rising interest rates added additional pressure on consumers, Hsu said. Buying conditions for homes declined this month, with increased interest rates overtaking elevated prices as the top factor weighing on consumers. Higher borrowing costs drove down buying conditions for vehicles as well.
Declining sentiment seen across the political spectrum
September's decline in sentiment was seen across the political spectrum. Moreover, Republican sentiment is currently 20% lower than January 2026 and below its historical average, according to Hsu.
While concerns over cost-of-living are pervasive across the political spectrum, this month's share of Republicans volunteering that their personal finances have been eroded by high prices reached its second highest reading since February 2025.
Consumer Sentiment Index
The Consumer Sentiment Index fell to 48.1 in the September 2026 survey, down from 51.7 in August and below last September's 55.1. The Current Index fell to 50.9, down from 51.9 in August and below last September's 60.4. The Expectations Index fell to 46.3, down from 51.5 in August and below last September's 51.7.
About the surveys
The Surveys of Consumers is a rotating panel survey at the University of Michigan Institute for Social Research. It is based on a nationally representative sample that gives each household in the coterminous U.S. an equal probability of being selected. Interviews are conducted throughout the month by web. The minimum monthly change required for significance at the 95% level in the Sentiment Index is 4.8 points; for the Current Economic Conditions Index and Index of Consumer Expectations, the minimum is 6 points.
About ISR
Established in 1949, the Institute for Social Research at the University of Michigan is among the world's oldest social science research organizations and a world leader in the development and application of social science methodology. ISR conducts some of the most widely cited surveys and studies in the nation, including the University of Michigan Surveys of Consumers, American National Election Studies, Monitoring the Future Study, Panel Study of Income Dynamics, Health and Retirement Study, National Survey of Black Americans and World Values Survey. ISR is also home to the Inter-University Consortium for Political and Social Research, which maintains the world's largest computerized social science data archive.
