Today's early release of the Reuters/University of Michigan Survey of Consumers for September indicated continued weakness in consumer sentiment with a reading of 54.9 falling 15.25% below the level seen last year while one year inflation expectations climbed to 3.7%.
The Index of Consumer Expectations (a component of the Conference Board's Index of Leading Economic Indicators) dropped to 47, and the Current Economic Conditions Index climbed to 74.5.
It's important to recognize that consumer sentiment has seriously eroded over the past few months with the current results remaining at levels not seen since 1980, a major indication that consumers are in the process of tightening even further on spending.
