Consumer sentiment dipped slightly in September, reaching its lowest point in four months and marking a 15% decline from January 2026, according to the University of Michigan Surveys of Consumers. The survey found that both current and future financial outlooks among consumers weakened by about 10% this month, with rising concerns over high prices continuing to grow. Joanne Hsu, director of the surveys and an economist at the University of Michigan, noted that expectations about short-term business conditions dropped sharply due to renewed worries about high fuel prices and the potential impact of escalating trade disputes on the broader economy. Overall, the survey found that people across different demographics and political groups agree that the economic outlook has worsened over the past year. Consumers are feeling increasing pressure from rising living costs, both in the present and the future. Nearly 55% of respondents cited high prices as a negative factor for their personal finances, up from 53% in August and 44% a year ago. After two consecutive months of decline, mentions of gasoline prices rose to 31% of consumers in September, as fuel costs climbed. Hsu explained that consumers do not expect relief from high gas prices anytime soon, anticipating that prices will continue to rise in both the short and long term. Additionally, renewed trade tensions have affected consumer sentiment, with unsolicited comments about tariffs increasing for the second month in a row, rising from 24% in July to 35% in September. Rising interest rates have also placed pressure on consumers, according to Hsu. Buying conditions for homes have weakened this month, with higher interest rates becoming the primary concern for consumers, surpassing the impact of high housing prices. Similarly, higher borrowing costs have negatively influenced the conditions for purchasing vehicles. The decline in consumer sentiment has been observed across the political spectrum. Republican sentiment is 20% lower than in January 2026 and below its historical average. Although concerns about the cost of living are widespread across all political groups, the proportion of Republicans indicating that their personal finances have been affected by high prices reached its second-highest level since February 2025. The Consumer Sentiment Index fell to 48.1 in the September 2026 survey, down from 51.7 in August and below the 55.1 recorded in September 2025. The Current Index, which measures how consumers view their current financial situation, dropped to 50.9, down from 51.9 in August and below last September's 60.4. The Expectations Index, which reflects how consumers anticipate their financial situation in the future, fell to 46.3, down from 51.5 in August and below last September's 51.7.