U.S. consumers are almost back to worrying about the economy like they did in May.<\/p>\n
Consumer sentiment has dropped nearly three index points so far this month, according to preliminary data <\/a> from the University of Michigan\u2019s Index of Consumer Sentiment published Friday.<\/p>\n The last time consumers\u2019 outlook on the economy looked this weak was in the wake of President Donald Trump’s global tariffs <\/a> announcement in April.<\/p>\n In April and May, consumer sentiment sank to 52.2. Early September data shows consumer sentiment at 55.4, its lowest rate since then, according to the survey.<\/p>\n Joanne Hsu, Surveys of Consumers director, said in the release that this sentiment was “particularly strong\u201d among lower- and middle-income consumers.<\/p>\n \u201cConsumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation,\u201d Hsu said. \u201cLikewise, consumers perceive risks to their pocketbooks as well; current and expected personal finances both eased about 8% this month.\u201d<\/p>\n The survey noted that consumers continue to expect unemployment to increase with a \u201cheightened risk\u201d to their own jobs. Consumers’ concerns are fairly aligned with their expectations for rising unemployment <\/a> and “heightened risks of personal job loss” during the next five years.<\/p>\n This fear isn\u2019t coming out of nowhere. Only 22,000 jobs <\/a> were added in August, marking a continuation of a cooling labor market. In July, 79,000 jobs were added while June saw a net loss of 13,000 jobs. Just this Tuesday, the Bureau of Labor Statistics revised the number of jobs added from March 2024 to March 2025 down by 911,00 <\/a>. And while the labor market took hit after hit, inflation continued to rise <\/a> in August.<\/p>\n Tariffs also remain on consumers\u2019 minds, with 60% of consumers \u201cproviding unprompted comments\u201d about Trump\u2019s trade war during interviews, Hsu noted, adding this is \u201clittle changed\u201d from August.<\/p>\n This month\u2019s early data represents a 21% drop from September 2024.<\/p>\n From last September to this January, consumer sentiment sat at an index above 70. In February it dropped to 64.7 and has jumped between a high of 61.7 and a low of 52.2 since then.<\/p>\n