# University of Michigan Reports Consumer Sentiment Drop

> Consumer sentiment fell 7% in September as trade disputes and high prices eroded confidence.
- Title: University of Michigan Reports Consumer Sentiment Drop
- Summary: Consumer sentiment fell 7% in September as trade disputes and high prices eroded confidence. University of Michigan's September consumer sentiment index…
- Keywords: university of michigan, consumer sentiment, trade disputes, high prices, economy, inflation, consumer confidence, business, finance, University, Michigan, Reports
- Source: Pymnts — https://pymnts.com/economy/2026/university-of-michigan-says-trade-disputes-and-high-prices-squeeze-consumer-sentiment
- Author: PYMNTS
- Published: 2026-09-28T19:11:35+00:00
- Read time: 1 min
- Topics: university of michigan, consumer sentiment, trade disputes, high prices, economy, inflation, consumer confidence, business, finance
## 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.
## Key takeaway

University of Michigan's September consumer sentiment index dropped 7% from August, driven by trade disputes and rising prices.