Consumer Sentiment: Headline Lower, Details Encouraging

Bottom Line: The University of Michigan's consumer sentiment fell more than expected in the preliminary September reading. Consumers' assessments of their current situation deteriorated modestly, correlating with the increase in gasoline prices. However, their year-ahead inflation expectations dropped sharply, down to 3.1% from 3.5%, and their expectations for the future improved. The consumer remains uncertain, but this report was better than the headline suggested.