WASHINGTON, Sept. 25 (Xinhua) -- U.S. consumer sentiment declined in September to its lowest level in four months, as concerns over personal finances, inflation and the economic outlook intensified, according to data released Friday by the University of Michigan.
The consumer sentiment index fell nearly four points from August and was down 15 percent from January. Views of current and year-ahead personal finances both weakened about 10 percent this month, while concerns over high prices continued to rise.
Year-ahead inflation expectations jumped from 4.0 percent in August to 4.6 percent in September, the highest since June and well above the 3.4 percent recorded in February before the Iran conflict began. Long-run inflation expectations ticked up to 3.4 percent, above their 2024 range of 2.8 percent to 3.2 percent.
The short-run outlook for business conditions plunged amid renewed worries that elevated fuel prices and re-escalating trade disputes could pass through to the economy as a whole. Buying conditions for durables improved a bit, in part due to a perception that completing such purchases now would help consumers avoid higher prices in the future.
"People are very worried about the future, they don't see the war (in Iran) ending soon and undoubtedly many are worried about the impact of AI," Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research, told Xinhua.
"Things are likely to stay negative unless the war ends and get much worse if the AI bubble bursts," Baker said.
The survey found broad agreement across political affiliations that the economic outlook has weakened since the beginning of the year. Republican sentiment was 20 percent below its January level, while Democratic sentiment was down 13 percent.
Darrell West, a senior fellow at the Brookings Institution, told Xinhua that low consumer sentiment could pose challenges for Republicans ahead of the November midterm elections.
"With people worrying about their economic futures, it makes them feel poorly towards the party controlling government. It poses risks for GOP incumbents running for reelection," West said. ■
