Michigan Consumer Sentiment Index Declined In September

Key Insights

• Index of Consumer Sentiment declined from 69.5 in August to 67.7 in September.
• Current Economic Conditions pulled back from 75.7 to 69.8.
• Index of Consumer Expectations grew from 65.5 to 66.3.

On September 15, the University of Michigan released Michigan Consumer Sentiment report for September. The report indicated that Michigan Consumer Sentiment declined from 69.5 in August to 67.7 in September, compared to analyst consensus of 69.1.

Current Economic Conditions decreased from 75.7 in August to 69.8 in September, while Index of Consumer Expectations improved from 65.5 to 66.3.

The University of Michigan commented: “Sentiment this month was characterized by divergent movements across index components and across demographic groups with little net change from last month […] few consumers mentioned the potential federal government shutdown, but if the shutdown comes to bear, consumer views on the economy will likely slide […]”

The Consumer Sentiment report is one of the few economic reports ahead of the Fed Interest Rate Decision, which will be released on September 20. FedWatch Tool indicates that there is a 97% probability that Fed will leave the federal funds rate unchanged at the upcoming meeting.

U.S. Dollar Index pulled back towards 105.10 after the release of the weaker-than-expected report. Consumer activity is extremely important for the U.S. economy. In case consumer activity slows down, the Fed may be less hawkish.

Gold tested session highs near the $1930 level as traders focused on weaker dollar.

SP500  settled near session lows at 4480. Traders are worried that Fed’s rate hikes put too much pressure on the economy.

For a look at all of today’s economic events, check out our economic calendar.