# US consumer sentiment falls to 47.8 as year-ahead inflation expectations jump to 4.6%

> The University of Michigan's preliminary September 2026 index fell to 47.8 from 51.7, and consumers' year-ahead inflation expectations rose to 4.6% from 4.0%.

- Canonical URL: https://forextradingcommunity.com/news/us-consumer-sentiment-september-2026/
- Type: Data
- Published: 2026-09-14
- Updated: 2026-09-14
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: USD

US consumer sentiment fell for a second straight month in early September 2026. The University of Michigan's preliminary Index of Consumer Sentiment dropped to 47.8 from 51.7 in August, and was well below the 55.1 recorded a year earlier.

Survey director Joanne Hsu said sentiment is now 16% below its February level.

## The components

- **Current economic conditions**: 50.9, down from 51.9
- **Consumer expectations**: 45.8, down from 51.5

Expectations fell much further than views of current conditions, so consumers are more worried about the months ahead than about their situation today.

## Inflation expectations rise

For currency markets, the more important numbers are inflation expectations:

- **Year-ahead**: 4.6%, up from 4.0% in August
- **Long-run**: 3.4%, up from 3.3%

When households expect higher inflation, they may push for higher wages and accept higher prices, which can make inflation harder to bring down. Central banks watch long-run expectations closely for that reason.

## The Fed connection

The preliminary reading came days before the Federal Reserve's decision on 16 September ([preview](/news/fed-meeting-september-2026-what-to-watch/)). US consumer prices rose 3.4% in the year to August ([CPI](/news/us-cpi-august-2026-inflation-3-4-percent/)), and the Fed's preferred measure, the PCE price index, was 3.7% higher in the year to July ([PCE](/news/us-pce-inflation-july-2026/)).

The final September figures are due on 25 September. Sentiment surveys rarely move the dollar as much as inflation or jobs data, but a jump in inflation expectations adds weight to arguments against easing policy. The central bank targets behind those arguments are compared in [inflation targets of the major central banks](/news/inflation-targets-of-major-central-banks/).

## Sources

- [University of Michigan: Surveys of Consumers, preliminary results for September 2026](https://www.sca.isr.umich.edu/)

## Common questions

### What is the University of Michigan consumer sentiment index for September 2026?

The preliminary reading was 47.8, down from 51.7 in August and 55.1 in September 2025.

### What are US consumers' inflation expectations?

In the preliminary September 2026 survey, year-ahead inflation expectations rose to 4.6% from 4.0%, and long-run expectations rose to 3.4% from 3.3%.

### When is the final September consumer sentiment reading?

The University of Michigan is due to publish the final September 2026 figures on 25 September.

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