WASHINGTON, Sept 25 (Reuters) - US consumer sentiment slipped to a four-month low in September amid worries that rising inflation would erode households' purchasing power, a survey showed on Friday.
The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index fell to a final reading of 48.1 this month from 51.7 in August. This was, however, an improvement from a preliminary reading of 47.8. Economists polled by Reuters had forecast the index at 47.6.
The index is down 15% from January. The University of Michigan said consumers' views of current and year-ahead expected personal finances both weakened about 10%, with concerns over high prices continuing to climb.
"Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year," said Joanne Hsu, the director of the Surveys of Consumers. "After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026. Democrats are down 13% over the same period."
The survey's measure of consumer expectations for inflation over the next year increased to 4.6% from 4.0% in August. Twelve-month inflation expectations have surged from 3.4% in February before the US-Israeli war with Iran started. Consumers' expectations for inflation over the next five years edged up to 3.4% after holding at 3.3% for three straight months.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
Source: Reuters