September consumer sentiment fell to its weakest level in four months as higher fuel costs, renewed inflation concerns and a darker economic outlook weighed on Republicans, Democrats and independents alike.

By yourNEWS Media Newsroom.

American consumers grew more pessimistic in September as rising fuel prices, renewed inflation concerns and uncertainty ahead of the November midterm elections weighed on expectations for the economy.

The University of Michigan’s final consumer sentiment index dropped to 48.1 in September from the previous month, marking its lowest reading in four months. The final figure was slightly better than the preliminary mid-month estimate of 47.8.

The deterioration was concentrated primarily in expectations about what lies ahead rather than assessments of current conditions.

The survey’s measure of current economic conditions declined 1.9% during the month, while the expectations index fell 7%.

A separate gauge measuring expectations for the economy over the coming year sank to its lowest level since 2022. Consumers also became less confident about the outlook for their own finances.

“Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year,” survey director Joanne Hsu said.

That decline crossed party lines.

Overall sentiment fell 7% in September. Among Republicans, the index declined 5.9% to 77.2. Democratic sentiment dropped 11.4% to 35.6, while the measure for independents slipped 0.6% to 47.7.

The partisan breakdown was even more pronounced in expectations.

Among Democrats, the expectations measure fell 16.2%. Earlier improvements in Democratic sentiment during the summer were erased by weaker readings in August and September.

Republicans also became substantially less optimistic about the future, with their expectations index falling 11.4% in September. The measure is down 25.2% since the start of the year.

Independent expectations declined 1.7% for the month and have fallen 10.6% since the beginning of 2026.

“Despite political differences, consumers unanimously believe that the outlook for the economy has diminished,’’ Hsu said.

Inflation returned to the center of consumers’ concerns as the war with Iran pushed energy costs sharply higher.

Diesel prices reached a record high during September, while gasoline prices also rose substantially. The renewed pressure from energy costs has increased concern that higher fuel prices could spread throughout the economy through transportation, production and other business expenses.

“The short-run outlook for business conditions plunged amid renewed worries that elevated fuel prices and re-escalating trade disputes could pass through to the economy as a whole,” Hsu said in a statement.

Consumers now expect prices to rise 4.6% over the next 12 months, up from 4% in August.

Their longer-term inflation expectations were lower but remained elevated, with respondents forecasting prices to increase 3.4% over the next five years.

The Federal Reserve raised interest rates this month after policymakers determined that the conflict with Iran was unlikely to end quickly and that oil prices could remain elevated.

Despite deteriorating sentiment and expensive fuel, household spending elsewhere in the economy has remained resilient.

Consumers have not substantially reduced expenditures outside the energy sector, a pattern occurring alongside historically low unemployment and the lowest year-to-date level of jobless claims since 1969.

One apparent bright spot in the September survey also reflected inflation anxiety.

Consumers reported improved buying conditions for durable goods, but the improvement largely stemmed from expectations that prices would rise further. Some respondents therefore viewed current purchases as preferable to waiting and potentially paying more later.

The survey results show that concerns about inflation, fuel costs and future economic conditions are cutting across political affiliations even as Republicans, Democrats and independents continue to report markedly different overall levels of confidence.

With the midterm elections approaching, the September reading leaves consumer sentiment near historically weak levels while expectations for future business conditions and personal finances continue to deteriorate.

Original article