US Consumer Sentiment Plunges to 48.1, Second-Lowest on Record

The University of Michigan's consumer sentiment index fell to 48.1 in September from 51.7 in August, marking the second consecutive monthly decline and the second-lowest reading in history. The 7.1-point drop over two months signals a sharp deterioration in consumer confidence, which historically correlates with weaker spending and economic growth. This raises recession risk and may pressure the Federal Reserve to ease policy, though inflation expectations data are not yet available.