The U.S. Consumer Sentiment Index, released Friday by the University of Michigan (UM) Surveys of Consumers, fell to 55.1 in the September 2025 survey, down from 58.2 in August and below last September's 70.3.

The Current Economic Conditions Index dropped to 60.4, down from 61.7 in August and below last September's 63.8. The Index of Consumer Expectations fell to 51.7, down from 55.9 in August and below last September's 74.5.

Consumers continue to express frustration over the persistence of high prices, with 44 percent mentioning that high prices are eroding their personal finances – the highest reading since November 2024, the survey showed.

Tariffs remain highly relevant to consumers. About 60 percent of consumers commented on tariffs, compared to 65 percent in May and 28 percent in January. Nearly 70 percent of consumers expect inflation to exceed any income gains in the year ahead, up from less than 60 percent in September 2024.

About 65 percent of consumers expect unemployment to rise in the year ahead, up from 57 percent in July and 35 percent a year ago. The expected probability of personal job loss ticked up in September to its highest level since March, suggesting that consumers are concerned about being personally affected by any negative developments in labor markets.

Responses to multiple survey questions show that the financial outlook for consumers has deteriorated, said economist Joanne Hsu, director of UM's Surveys of Consumers. "For many consumers, robust spending will be difficult to maintain going forward."