Consumer sentiment plunged in September amid heightened inflation fears, hitting its second lowest level on record on the University of Michigan's monthly survey released Friday.
The survey's headline index hit a level of 47.8, down 7.5% from the August reading and off 13.2% from a year ago. This was the second lowest reading on record for data going back to 1952 — the bottom coming in May as rising prices also jolted the outlook.
"Year-ahead expectations for both personal finances and business conditions plunged," survey director Joanne Hsu said. "With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come."
Indeed, the one-year inflation outlook surged to 4.6%, up 0.6 percentage point from the prior level and the highest since hitting the same level in June.
The current conditions index in the survey fell 1.9% from the prior month, while the expectations measure tumbled 11.1%.