Consumer sentiment September 2026 reading falls to 47.8

The consumer sentiment September 2026 reading fell to 47.8 in the University of Michigan’s preliminary survey, down from 51.7 in August. For investors watching the health of the U.S. consumer, the report showed households becoming notably more pessimistic about the months ahead while expecting faster inflation.

The headline Index of Consumer Sentiment declined 7.5% from August and stood 13.2% below its September 2025 level, the university reported. The September figure is preliminary. The university said it plans to release its final September results on Sept. 25 at 10 a.m. Eastern time.

Why did consumer sentiment fall in September 2026?

The survey’s forward-looking measure accounted for the sharper monthly drop. The Index of Consumer Expectations slid to 45.8 from 51.5 in August, an 11.1% decline. By comparison, the Current Economic Conditions index edged down 1.9%, to 50.9 from 51.9.

Joanne Hsu, director of the university’s Surveys of Consumers, said respondents’ year-ahead expectations for personal finances and business conditions fell sharply. She cited a resurgence in fuel prices and trade tensions, saying consumers anticipated more pressure on their household budgets.

The university said overall sentiment was 16% below its February reading and 13% below its level a year earlier. It also said expected business conditions over the next five years held steady in September, though those readings remained well below their historical average.

What happened to inflation expectations?

Consumers surveyed by the university expected inflation over the next year to run at 4.6%, up from 4.0% in August. The September result was the highest since June, according to the release. It was also above the 3.4% reading reported in February and above every 2024 reading.

Longer-run inflation expectations rose more modestly, to 3.4% from 3.3%. The increase ended three straight months at 3.3%, and the university said the latest figure remained above the 2.8% to 3.2% range seen during 2024.

The survey reports consumers’ assessments and expectations, rather than a measure of actual price changes. Its September results show the divide within the month’s decline: views of present conditions weakened slightly, while respondents’ outlook for their finances and business conditions deteriorated more sharply.

This story draws on original reporting from CNBC.