The University of Michigan’s consumer sentiment index rose slightly to 48.1 in September 2026 from a preliminary reading of 47.8, but declined from August’s 51.7 and remained near historically weak levels. Assessments of current and year-ahead personal finances each deteriorated by around 10% during the month as concerns about high prices intensified. Year-ahead inflation expectations were confirmed at 4.6%, up from 4% in August and the highest since June, while five-year expectations reached 3.4%, above 3.3% in each of the previous three months. Durable-goods buying conditions improved modestly as some consumers believed purchasing sooner could help avoid higher prices. The short-term business outlook deteriorated sharply amid renewed concerns over elevated fuel prices and escalating trade disputes. Sentiment declined among both Republicans and Democrats, with confidence down 20% and 13%, respectively, from January.