The trust of the American consumer fell for the second consecutive month in September, since consumers received an increase in risks for commercial conditions, labor market and inflation.
Consumer surveys at the University of Michigan reported Friday that their consumer’s feeling index fell to 55.4 this month, its lowest level since May, from a final reading of 58.2 in August. The economists surveyed by Reuters were waiting for a 58.0 reading, with few changes compared to the previous month.
“Consumers continue to notice multiple vulnerabilities in the economy, with an increase in risks for commercial conditions, labor markets and inflation,” said Joanne Hsu, director of consumer surveys, in a statement.
“Likewise, risks to their pockets are also perceived; both current and expected personal finances decreased around 8% this month. Commercial policy is still very relevant to consumers, with about 60% of consumers who made spontaneous comments on tariffs during interviews, with few changes compared to last month.”
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Survey shows pessimism for the rest of 2025
The survey indicator on consumers inflation expectations for next year remained unchanged in 4.8% this month. The inflation expectations of consumers for the next five years increased from 3.5 to 3.9% last month.
In general, households were pessimistic about the economy throughout 2025 due to the concern that the aggressive tariff measures of President Donald Trump cause an increase in goods prices and reduce their purchasing power.
With Reuters information
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