From Pymnts · PYMNTS · · 1m 10s
University of Michigan Reports Consumer Sentiment Drop
Consumer sentiment fell 7% in September as trade disputes and high prices eroded confidence.
In brief
Consumer sentiment fell 7% in September as trade disputes and high prices eroded confidence. University of Michigan's September consumer sentiment index dropped 7% from August, driven by trade disputes and rising prices. Originally reported by Pymnts.
September Consumer Sentiment
The University of Michigan's September Index for Consumer Sentiment declined 7% from August and 12.7% from January.
Key Drivers of Decline
High prices weakened views of current and year-ahead personal finances while trade disputes and fuel costs lowered short-run business outlook.
Political Divide in Sentiment
Republican sentiment dropped 20% from January while Democrats fell 13% over the same period.
Conference Board Data
The Conference Board's August Consumer Confidence Index fell 0.8 points to 89.4 while its Present Situation Index rose 6.8 points to 121.2.
Consumer Expectations
The PYMNTS September Consumer Expectations Index fell 0.7 points to 54.1 as views of the economy and job mobility weakened.
Savings Impact
Household savings are burning fuel faster than before despite stable confidence, meaning savings buy less time than they used to.
The short version
University of Michigan's September consumer sentiment index dropped 7% from August, driven by trade disputes and rising prices.
