US consumer sentiment falls to four-month low — The Hill

In the United States, the consumer sentiment index fell to a four-month low in September amid inflation and concerns over rising living costs. According to The Hill, the University of Michigan’s Surveys of Consumers reading stood at 48.1 points — 7% lower than in August and 15% below the January level.

Economic assessments

The index is based on how Americans assess their own finances and the overall economic situation, and it is used to forecast future consumer spending. The survey recorded a decline in sentiment among supporters of both major political parties: in September, the reading among Republicans was 20% lower than in January, while among Democrats it was 13% lower.

Surveys of Consumers Director Joanne Hsu cited new concerns about higher fuel prices and a renewed escalation of trade disputes as factors behind the decline in sentiment. According to her, respondents from different demographic and political groups generally agreed that the economic outlook had worsened over the course of the year.

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Fuel and inflation expectations

The share of respondents who mentioned gasoline on their own in answers to questions about the economy rose to 31% in September after declining for two months. The Hill links the sharp rise in gasoline and diesel fuel prices to the effective blockage of the Strait of Hormuz, through which 20% of the world’s oil is exported, amid the US war with Iran.

According to the American Automobile Association, the average price of gasoline in the country reached $4.49 per gallon on Friday, $1.34 higher than a year earlier. Diesel fuel cost an average of $6.50 per gallon. Inflation expectations for the coming year rose from 4% in August to 4.6% in September, while long-term expectations increased from 3.3% to 3.4%.