Americans Panic Over Jobs As Confidence Hits 4-Month Low!

This downturn is attributed to mounting concerns over job security and the relentless surge in prices, according to preliminary data released on Friday.

As reported by Breitbart, the University of Michigan's widely monitored index of consumer sentiment dipped to 55.4 in September, down from 58.2 in August. This unexpected drop defied economists' predictions and mirrored what Joanne Hsu, the survey director, termed as "multiple vulnerabilities in the economy."

September 13, 2025

The slump was primarily propelled by lower- and middle-income consumers who voiced escalating worries about business conditions, labor markets, and inflation. Intriguingly, consumers' future expectations deteriorated more drastically than their appraisal of the current situation, indicating a growing pessimism about the economic trajectory.

"Consumers continue to note multiple vulnerabilities in the economy, with rising risks to business conditions, labor markets, and inflation," Hsu stated. "Likewise, consumers perceive risks to their pocketbooks as well."

This sentiment data contributes to an expanding pool of evidence suggesting that the Federal Reserve's restrictive monetary policy is starting to impede economic activity, particularly in the labor market. Higher interest rates, implemented to combat inflation, seem to be chilling hiring and stifling consumer spending power the primary channels through which Fed policy operates to alleviate price pressures.

Recent economic data paints a grim picture of a slowing economy. U.S. employers added a mere 22,000 jobs in August, falling significantly short of expectations, while consumer prices soared at their fastest pace since the year's start. A separate survey from the Federal Reserve Bank of New York this week revealed that consumers feel less likely to secure a new job if needed than at any other time in the survey's history.

The Michigan survey disclosed that consumers' anticipated probability of personal job loss has surged dramatically this year and rose again in September. Both current and expected personal finances declined about 8 percent this month, indicating strain on household budgets.

While consumers anticipate prices to climb 4.8 percent over the next year unchanged from August their long-term inflation expectations rose to 3.9 percent from 3.5 percent, marking the second consecutive monthly increase. This figure remains significantly above the Federal Reserve's 2 percent target and could potentially hinder policymakers' attempts to rein in inflation.

Trade policy continues to burden consumer minds, with approximately 60 percent of survey respondents spontaneously mentioning tariffs during interviews. Sentiment has only partially rebounded since plummeting in April, when the White House initially announced plans for substantial tariffs on imported goods.

The eroding confidence was mirrored in financial markets on Friday, with stocks opening lower and the yield on the 10-year Treasury note rising to 4.064 percent.

The survey results highlight the precarious balancing act Federal Reserve officials face as they strive to slow the economy sufficiently to curb inflation without sparking a recession. While restrictive monetary policy appears to be functioning as intended by cooling labor demand and moderating consumer spending, the escalating anxiety among Americans about their economic prospects suggests the effects may be intensifying.

Economists had forecasted the sentiment index to decline only slightly to 58.1, making the actual drop to 55.4 more pronounced. This reading represents a significant deterioration from September 2024, when the index stood at 70.1.

The consumer survey, conducted from Aug. 26 to Sept. 8, captured reactions to both the weak jobs report and rising prices in key household expenses like groceries and gasoline. The findings underscore the growing economic challenges facing American households, as they grapple with job insecurity and the relentless surge in prices.