Michigan consumer sentiment falls to second-lowest reading
The University of Michigan’s preliminary September consumer sentiment index fell to 47.8 from 51.7 in August, the second-lowest reading in the survey’s history. Expectations dropped more sharply than current conditions, while year-ahead inflation expectations rose to 4.6%.
S. consumers deteriorated further in September. 2% below where it stood a year ago. The damage was almost entirely forward-looking.
9. 4% Source: University of Michigan Surveys of Consumers, preliminary September 2026 Fuel Prices Did The Damage Surveys of Consumers Director Joanne Hsu said sentiment has now fallen for a second consecutive month, with Democrats and Republicans both posting sizable declines while independents were little changed. Year-ahead expectations for personal finances and for business conditions both plunged. "With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come," Hsu said.
06 a gallon on Friday, the first time it has crossed $6 and a 63% increase from a year ago. 30, up 13 cents in a week and 34% over 12 months, Diesel matters disproportionately because it prices freight, farming and construction rather than commuting, which is how an energy shock migrates into the cost of everything else. 4% from a year earlier, as energy costs rose more than 16% annually. Read Also: Underlying Inflation Hits Lowest Since 2021: Why Markets Bet On Fed Hikes?
4% recorded in February before the Iran conflict began. 2% range that prevailed through 2024. Policymakers watch the series for signs that expectations are drifting away from the 2% target. The Fed Is Now Expected To Hike Next Week Odds of a rate hike at next week's meeting climbed to roughly 86% after the CPI release, from about 70% before it.
Despite higher rate-hike expectations, equities rallied. 96. The relief came from crude, which reversed hard after Gulf foreign ministers were reported to be meeting their Iranian counterparts in Oman on Monday to negotiate shipping through the Strait of Hormuz, and after the International Energy Agency cut its 2026 demand outlook. 63, though it remains up roughly 9% on the week.
Separately, Oracle Corp. (NYSE: ORCL ) jumped after reporting $664 billion in remaining performance obligations, lifting the AI hardware complex. Image: Shutterstock