UMich Sentiment Drops, Inflation Expectations Climb in September

PCE indicators hint at rising inflation, echoing trends in CPI and PPI. UMich inflation outlooks increased, but were lower than August’s readings. Despite the market predicting inflation growth, sentiment suggests a slowdown. UMich Sentiment, while up from its preliminary figure, declined from August. Economic uncertainty is fueled by potential government shutdowns and auto industry disputes. Historically, declining household item buying conditions signal rising unemployment, suggesting a potential disconnect in current unemployment figures.