US consumer sentiment weakened sharply in early September as higher gasoline prices and trade tensions increased fears of rising inflation, a University of Michigan survey showed on Friday.
The Consumer Sentiment Index fell to 47.8 from 51.7 in August, below the 51.0 forecast by economists surveyed by Reuters.
Inflation expectations for the next year jumped to 4.6% from 4.0% in August. Five year expectations also edged higher to 3.4% from 3.3%.
The survey showed sentiment declining among both Democrats and Republicans, while confidence among Independents was largely unchanged.
Joanne Hsu, director of the survey, said rising fuel prices and trade tensions were making consumers expect greater pressure on household finances.
One year inflation expectations have risen significantly since February, when they stood at 3.4%, before the US led war with Iran began.
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