US consumer sentiment fell for a second straight month in September as consumers saw rising risks to business conditions, the labor market and inflation.
The University of Michigan's Surveys of Consumers on Friday said its Consumer Sentiment Index fell to 55.4 this month, the lowest since May, from a final reading of 58.2 in August. Economists polled by Reuters had been expecting a reading of 58.0, little changed from the month before, according to Reuters.
"Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Joanne Hsu, the director of the Surveys of Consumers, said in a statement.
"Likewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month. Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews, little changed from last month."
The survey's measure of consumer expectations for inflation over the next year was unchanged at 4.8% this month. Consumers' expectations for inflation over the next five years rose to 3.9% from 3.5% last month.
