Consumer Sentiment down 4.8% in Early September, Lowest Since May

Ann Arbor, MI, September 12, 2025-Consumer sentiment fell 4.8% to 55.4 in early September, according to preliminary results from the University of Mighican Survey of Consumers.

This represents a 21% decline year over year. 

“Consumer sentiment moved down less than three index points in early September,” according to Survey of Consumer director Joanna Hsu. “This month’s easing in economic views was particularly strong among lower and middle income consumers. Buying conditions for durables improved, while all other index components fell. Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation. Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month. Still, sentiment remains above April and May 2025 readings, immediately after the initial announcement of reciprocal tariffs. 

“Year-ahead inflation expectations held steady at 4.8%, unchanged from August. Long-run inflation expectations moved up for the second straight month to 3.9% in September. This current reading is considerably lower than the 4.4% seen in April.”