The preliminary August report released by the University of Michigan on Friday showed that US consumer confidence hit a new low since May, with long-term inflation expectations rising for two consecutive months. Concerns about the labor market and prices weighed on the economic outlook.

The preliminary University of Michigan Consumer Sentiment Index for September was 55.4, the lowest since May this year and the second consecutive monthly decline. The expected value was 58, while the previous value was 58.2. This figure fell below almost all economists' forecasts in media surveys.

Analysis indicates that these figures suggest the US economy is facing dual pressures of slowing growth and rising inflation, providing grounds for the Federal Reserve to adopt more accommodative monetary policies.

Joanne Hsu, Director of the University of Michigan Survey, stated in a declaration:

Consumers' expectations of the probability of personal unemployment have increased significantly this year and rose again in September. This indicates that consumers are indeed worried they might be directly affected by any negative developments in the labor market. Additionally, consumers are feeling pressured by persistently high prices.

Data released in recent weeks depicts a significantly slowing labor market and stubborn inflation. In August, US employers added only 22,000 jobs, while consumer prices rose at the fastest pace this year. Key household expenses such as groceries and gasoline have climbed.