U.S. consumer confidence fell sharply in September 2025, with the University of Michigan's benchmark index dropping to 55.1 – its lowest level since November 2024 – as inflation anxieties and labor market uncertainties weigh on household budgets.
Economic Pressures Intensify
The Current Economic Conditions Index slid to 60.4 while consumer expectations plunged to 51.7, reflecting growing pessimism. Nearly 70% of respondents now believe inflation will outpace income growth, up 10 percentage points from last year. 'This deterioration suggests robust spending will be difficult to maintain,' warned UM economist Joanne Hsu.
Tariffs Compound Cost Concerns
With 44% of consumers citing high prices as their top financial strain, tariff discussions remain prevalent. While 60% mentioned trade policies in September – down from May's peak – analysts note sustained focus on import costs signals lasting market impacts.
Labor Market Jitters Emerge
Unemployment fears reached new heights, with 65% anticipating job losses – nearly double last year's figures. Personal job security concerns hit their highest since March, suggesting households are bracing for potential economic turbulence.
