The University of Michigan released its final September consumer sentiment index on Friday, showing a decline from August as American households grew more pessimistic about prices and interest rates. The reading fell below both the preliminary September figure and analyst expectations.

The survey, directed by Joanne Hsu at the University of Michigan, has tracked a softening mood among consumers throughout the summer. The final reading reflected concern over persistent inflation, which the Bureau of Labor Statistics reported at 3.1% for August, and lingering uncertainty following the Federal Reserve's recent policy shift.

Year-ahead inflation expectations in the survey remained elevated, staying above the Fed's 2% target. Consumers across political and income groups voiced unease about the durability of their purchasing power and the outlook for borrowing costs, complicating the central bank's messaging.

The weaker sentiment print added to a run of cautious data that pressured US equities during the week, with major averages drifting lower on rate and geopolitical concerns. Retailers exposed to discretionary spending, including department stores and mid-tier chains, face a softer consumer backdrop heading into the holiday quarter.

Economists at firms including Oxford Economics have warned that fragile confidence, combined with a cooling labour market, could restrain fourth-quarter consumption growth despite resilient headline output figures.