Trump's Economy Hits New Low as Consumer Sentiment Plummets

The Consumer Sentiment Index charted by the University of Michigan's Surveys of Consumers shows that U.S. consumer sentiment has hit a new low, falling to 47.8 in September, down from 51.7 the previous month. This is lower than economists had forecast, with Reuters reporting an expected drop to 51.

The survey found that consumers expect inflation to rise by 4.6 percent over the next year, up from 4 percent in August. They also anticipate higher inflation expectations over the next 5 to 10 years. Notably, a majority of consumers now expect interest rates to rise in the year ahead as the Federal Reserve moves to slow inflation.

The numbers are driven by sizeable declines among both Democrats and Republicans, with Republican consumer sentiment tumbling sharply all year. As recently as March, 62 percent of Republicans believed that the government was doing a good job with the economy, but this month that number fell to just 35 percent, the lowest reading under Trump's administration.