U.S. Consumer Sentiment Sinks to Second-Lowest on Record

NEW YORK — U.S. consumer sentiment has deteriorated to the second-weakest level on record as higher fuel and consumer prices weigh on households.

The University of Michigan said on the 11th that its preliminary consumer sentiment index for this month came in at 47.8. If confirmed at that level, it would be the second-lowest reading ever, after 44.8 in May. The figure was down 7.5% from 51.7 in August and fell short of the 51.4 expected by analysts polled by Dow Jones.

The current economic conditions index, which reflects how consumers view the economy now, slipped to 50.9 in September from 51.9 in August. The consumer expectations index, which tracks the outlook ahead, dropped to 45.8 from 51.5 over the same period. Consumers' one-year and five-year inflation expectations rose to 4.6% and 3.4% in September from 4.0% and 3.3% in August.

"Year-ahead expectations for personal finances and business conditions plunged," said Joanne Hsu, director of the survey at the University of Michigan. "Consumers expected that rising fuel prices and escalating trade tensions would add further strain on household budgets."