Consumer Sentiment Declined 5.3% to 55.1 in September

Ann Arbor, MI, September 26, 2025-Consumer sentiment declined 5.3% to 55.1 in September from 58.2 in August, according to final results from the University of Michigan Survey of Consumers. This represents a 21.6% decline year over year. 

“Consumer sentiment confirmed its early-month reading and eased about 5% from last month but remains above the low readings seen in April and May of this year,” says Survey of Consumers director Joanne Hsu. “Although September’s decline was relatively modest, it was still seen across a broad swath of the population, across groups by age, income, and education, and all five index components. A key exception: sentiment for consumers with larger stock holdings held steady in September, while for those with smaller or no holdings, sentiment decreased. This month, sentiment moved down about 9% for independents and 4% for Republicans, whereas it lifted this month for Democrats. Nationally, not only did macroeconomic expectations fall, particularly for labor markets and business conditions, but personal expectations did as well, with a softening outlook for their own incomes and personal finances. Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year. Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets. 

“Year-ahead inflation expectations receded slightly to 4.7% from 4.8% last month. Long-run inflation expectations moved up for the second straight month to 3.7% in September, but stand much lower than the 4.4% spike seen in April.”