Consumer sentiment plunges amid rising inflation fears

Consumer sentiment in the United States plummeted in September to 47.8, according to the University of Michigan’s monthly survey. This represents the second-lowest reading on record since 1952, driven by heightened inflation fears and rising fuel prices. The one-year inflation outlook rose to 4.6%, while gasoline prices saw significant annual increases.

Economic data indicates growing pressure on consumers in both the United States and Canada. In the U.S., the Consumer Price Index showed inflation at 3.4% annually, leading traders to anticipate a Federal Reserve rate hike. In Canada, household debt-to-GDP ratios remain among the highest in the G7, hovering near 100%. Recent retail sales data also suggests a downturn, with U.S. retail sales falling 0.6% in July and Canadian retail sales expected to see a sharp decline.