U.S. consumer sentiment fell sharply in early September as fuel costs and trade tensions lifted inflation expectations, according to the University of Michigan Surveys of Consumers preliminary reading. The sentiment index dropped to 47.8 from 51.7 in August, below a Reuters poll forecast of 51.0. One-year inflation expectations jumped to 4.6% from 4.0%, and five-year expectations edged up to 3.4% from 3.3%.
Surveys director Joanne Hsu said a resurgence in fuel prices and trade tensions left consumers anticipating greater pressures on their pocketbooks. RSM Real Economy noted the preliminary reading was the lowest since May, with expectations at 45.8 from 51.5 and current conditions at 50.9 from 51.9. The figures are early September preliminaries, not the final September release. Fuel and survey color here; the August consumer price index table and diesel pump threshold remain separate stories.
Sources: Reuters Lucia Mutikani (UMich prelim 47.8; Reuters cons 51.0; 1y 4.6%; 5y 3.4%; Hsu quote); RSM Real Economy (lowest since May; sub-indexes).
