Washington, DC (CNN) 鈥� Americans are taking notice of a possible and the uncertainty of , according to the University of Michigan鈥檚 latest consumer sentiment survey.
The university鈥檚 Consumer Sentiment Index edged lower by 1.4 points in September, according to a final reading. That means US consumers didn鈥檛 feel much gloomier this month 鈥� but that could change in October.
鈥淐onsumers are understandably unsure about the trajectory of the economy given multiple sources of uncertainty, for example over the possible shutdown of the federal government and labor disputes in the auto industry,鈥� said the university鈥檚 Surveys of Consumers Director Joanne Hsu in a release.
鈥淯ntil more information emerges about these developments, though, consumers have reserved judgment on whether economic conditions have materially changed from the past few months,鈥� she added.
The survey鈥檚 measure of consumers鈥� expectations of future business conditions inched higher to a reading of 66 in September, up from August鈥檚 reading of 65.5. Meanwhile, Americans鈥� expectation of inflation rates in the year ahead moderated to a 3.2% rate this month, down from 3.5% in the prior month.
Consumer sentiment as congressional lawmakers debated raising the federal government鈥檚 debt limit right up until the 11th hour, barely averting a US default. Americans鈥� moods could falter in a similar fashion if the government shuts down because Congress didn鈥檛 approve new spending. The shutdown鈥檚 full impact also depends largely on how long it lasts.
For now, it seems like House Republicans are unlikely on a spending bill that would also pass through the Senate by Saturday鈥檚 midnight deadline. That would mean some federal workers become furloughed and agencies operate with skeleton crews, hamstringing agencies鈥� ability to provide crucial government services.
The ongoing United Auto Workers strike is also not expected to end soon. The UAW said it is to additional facilities of automakers Ford and GM.
There鈥檚 also an expected strike from at hundreds of Kaiser Permanente facilities across California, Colorado, Oregon, Washington, Virginia, and Washington, DC, starting Wednesday, if contract negotiations fall through.
There are also two unions of culinary workers and bartenders that represent that voted Tuesday to authorize a strike.
With so much turmoil, Americans will likely feel uneasy in the coming weeks, which could affect their spending. A separate report from the Commerce Department released Friday showed that Americans , a slowdown from July鈥檚 0.9% gain.
The-CNN-Wire
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