News about consumer sentiment

Michigan residents describe a tough economy, and the University of Michigan's consumer sentiment index, the nation's longest-running survey dating back to 1946, is lower than almost any time in modern history, including the stagflation era, the 2008 financial crisis and post-COVID price spikes. The share of consumers expecting wages to outpace inflation fell from 18% to 11% in September, as wages have not kept up with prices. According to the Bureau of Labor Statistics, grocery prices rose more than four percent over two years, AAA reports gas prices are up 35 percent, and Freddie Mac projects 30-year mortgage rates to stay above seven percent through next year. A Northville real estate agent said mortgage rates rising from 6.5 percent to 7.5 percent meant buyers could afford $50,000 less, leaving a house on the market for over a month. Trump had promised to bring prices down quickly, but many voters feel he has not kept that promise, raising the question of whether gloomy sentiment will translate into votes.