US September consumer confidence index falls to a new low of 47.8 in recent years, inflation expectations rise to 4.6%, with soaring gasoline prices and US-Iran conflict weighing.
Preliminary survey results released by the University of Michigan on Friday showed that the US consumer sentiment index for September fell to 47.8 from 51.7 in August, lower than all economists' forecasts. Consumers' inflation expectations for the next year jumped from 4% to 4.6%, and long-term inflation expectations for 5 to 10 years also slightly increased to 3.4%. This decline in confidence was mainly due to gasoline prices rising to their highest level in September and the ongoing conflict between the US and Iran pushing up energy costs. The survey also showed that for the first time since 2023, most consumers expect the Federal Reserve to raise interest rates within the next year, reflecting deep market concerns about a resurgence of inflation. Additionally, satisfaction among Republican respondents with the government's economic management dropped to 35%, the lowest level since Donald Trump returned to the White House last year.
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