US consumer sentiment weakens in September as inflation fears mount

US consumer sentiment deteriorated in early September, according to a University of Michigan Surveys of Consumers reading, as households contended with higher fuel costs and trade tensions that raised concerns about inflation over the coming year.

The Consumer Sentiment Index slipped to 47.8 this month from 51.7 in August. Economists had expected a reading of 51.0. The decline was broad, with sentiment weakening among consumers who identify as Democrats and Republicans, while views among Independents were largely unchanged.

"With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come," said Joanne Hsu, director of the Surveys of Consumers.

The survey's measure of inflation expectations for the next 12 months climbed to 4.6% from 4.0% in August. Twelve-month expectations stood at 3.4% in February, before the US-led war with Iran began. Expectations for inflation over the next five years edged up to 3.4% from 3.3%, remaining above their 2024 range of 2.8% to 3.2%.

The figures point to mounting concern among American households about price pressures and the outlook for their finances.