Having fallen and missed the last two months, UMich Consumer Sentiment plunged in September’s preliminary data from 91.9 to 85.7 (dramatically missing the 91.1 expectations) crashing to its lowest point in a year. This is the biggest miss on record. Crucially, this is the all-important factor that the Fed’s Dudley said he would be monitoring ahead of his decision on rate hikes… Hope collapsed as “expectations” tumbled from 83.4 to 76.4 – the lowest in  a year as 73% of respondents cited negative economic developments seeing a weaker economy due to a global growth slowdown.

Not pretty…

Reality is also starting to set in for the majority who expected higher incomes in the next year has now dropped to just 48.3% – its lowest since 2014.