The Michigan Consumer Sentiment Index experienced a decrease in September.

The consumer sentiment is significantly lower in September at 67.7 points compared to the historical average reading of 86 points.

Highlights

• The Index of Consumer Sentiment decreased from 69.5 in August to 67.7 in September.
• Current Economic Conditions retreated from 75.7 to 69.8.
• The Index of Consumer Expectations increased from 65.5 to 66.3.

On September 15, the University of Michigan published its Michigan Consumer Sentiment report for September. According to the report, the Michigan Consumer Sentiment declined from 69.5 in August to 67.7 in September, falling short of the analyst consensus of 69.1.

The Current Economic Conditions component decreased from 75.7 in August to 69.8 in September, while the Index of Consumer Expectations showed a slight improvement from 65.5 to 66.3.

The University of Michigan noted that sentiment for this month was mixed across various index components and demographic groups, resulting in minimal overall change from the previous month. The potential government shutdown was mentioned by a few consumers, and if it were to occur, it could negatively impact consumer views on the economy.

The Michigan Consumer Sentiment report is one of the key economic indicators preceding the upcoming Fed Interest Rate Decision scheduled for September 20. The FedWatch Tool suggests a 97% probability that the Fed will maintain the current federal funds rate at the upcoming meeting.

Following the release of the weaker-than-expected report, the U.S. Dollar Index retreated towards 105.10. Consumer activity is crucial for the U.S. economy, and a slowdown in consumer activity could influence the Fed to adopt a less hawkish stance.

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

The S&P 500 settled near session lows at 4480, with concerns arising among traders regarding the potential strain on the economy from the Fed's rate hikes.