Early Results Indicate that Consumer Sentiment is Down in September

Ann Arbor, MI, September 11, 2015—Consumer sentiment fell to 85.7 in September from August’s 91.9, according to preliminary results from the University of Michigan’s Survey of Consumers.

The September rate represents a 6.7% decline from August, but a 1.3% increase over September 2014.

According to Survey of Consumers’ chief economist, Richard Curtin, “The decline in optimism narrowed in early September from late August as consumers grew somewhat more confident that the underlying strength in the domestic economy would insure a continued expansion. The twin strengths of higher employment and lower prices softened the impact from the losses in household wealth. To be sure, consumers still anticipate a weaker domestic economy due to the global slowdown and are less optimistic about future growth in jobs and wages than they were a few months ago. While the current strength in consumer spending is still likely to persist in the year ahead, the more lasting impact of recent events may be a heightened attentiveness by consumers to potential negative developments. Without this recent shift in focus, consumers would have been more likely to view the Fed's interest rate hike as confirming their prevailing optimism, but with the shift, it could be taken as a signal for a slower pace of future economic growth.”