US Economy

Consumer sentiment hits 85.7 in September vs. 91.2 estimate

Disappointing consumer sentiment
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Disappointing consumer sentiment

American consumers are feeling less optimistic for September, according a report released Friday.

Consumer sentiment was 85.7 in September, down from 91.9 in August, according to a monthly survey by the University of Michigan. That missed expectations for 91.2 from analysts polled by Thomson Reuters.

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The reading represented a 6.7 percent monthly decline and a 1.3 percent increase from this time last year.

The closely-followed barometer of measures U.S. consumers' attitude about the economy, including overall sentiment, feelings on the current economy and future expectations. Feelings about current economic conditions and future expectations also hit the lowest since October 2014.

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Consumers were 4.6 percent less confident this month about current economic conditions, which came in at 100.3, below analyst predictions of 103.6. Expectations declined 8.4 percent month-on-month for September to reach 76.4, below analyst expectations of 82.8.

The decline comes as the stock market mounts an uneven recovery from a volatile month, when stocks slid sharply earlier in the month amidst concerns about Chinese economic growth.

"Consumers still anticipate a weaker domestic economy due to the global slowdown and are less optimistic about future growth in jobs and wages than they were a few months ago," Richard Curtin, surveys of consumers economist, said in a statement.

The survey's one-year inflation expectation, meanwhile, was 2.9 percent in September, from 2.8 percent in August, while the survey's five-year inflation outlook was 2.8 percent from 2.7 percent in August.

Friday's survey suggests that a signal for a slower pace of future economic growth, Curtin said. But Curtin also said "the twin strengths of higher employment and lower prices" would soften the impact from other losses.

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—Reuters contributed to this report.