U.S. Consumer Sentiment Declines Slightly More Than Initially Estimated In September

(RTTNews) - Consumer sentiment in the U.S. deteriorated by slightly more than previously estimated in the month of September, according to revised data released by the University of Michigan on Friday.

The University of Michigan said its consumer sentiment index for September was downwardly revised to 55.1 from a preliminary ready of 55.4.

Economists had expected the consumer sentiment index to be unrevised from the preliminary reading, which was still down from 58.2 in August.

"Although September's decline was relatively modest, it was still seen across a broad swath of the population, across groups by age, income, and education, and all five index components," said Surveys of Consumers Director Joanne Hsu.

She added, "A key exception: sentiment for consumers with larger stock holdings held steady in September, while for those with smaller or no holdings, sentiment decreased."

The report said the current economic conditions index fell to 60.4 in September from 61.7 in August, while the index of consumer expectations slid to 51.7 in September from 55.9 in August.

The University of Michigan also said year-ahead inflation expectations receded slightly, edging down to 4.7 percent in September from 4.8 percent in August.

On the other hand, the report said long-run inflation expectations rose to 3.7 percent in September from 3.5 percent in August but remain much lower than the 4.4 percent spike seen in April.

"Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year," said Hsu.

She continued. "Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets."