📌 Introduction
American consumers are feeling the squeeze. The University of Michigan Consumer Sentiment Index dropped for the second straight month, signaling concerns about the economy.
🔍 Key Data
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September 2025 reading: 55.4 (down from 58.2 in August).
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Inflation expectations: 3.1% for the year ahead.
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Five-year inflation outlook: 2.9%, slightly higher than August.
📰 What’s Driving the Decline
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Persistent inflation pressures on food, housing, and energy.
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Worries over rising tariffs and trade tensions.
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Labor market slowdown, with fewer job openings.
🌍 Impact
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Stock Market: Investors are watching closely, as consumer confidence drives spending.
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Politics: Economic worries could influence 2026 midterms.
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Households: Families are cutting back on big purchases.