US consumer sentiment fell unexpectedly in September, a survey showed today, as persistent weakness in the job market, high gasoline prices and the ongoing occupation in Iraq took a toll.
The University of Michigan's final September index of consumer sentiment fell to 87.7, below economists' forecasts of 88.5, from 89.3 in August.
Sentiment dipped heavily from the preliminary reading of 88.2 at mid-month.
Consumer sentiment is still above the nine-year low of 77.6 reached in March at the start of the Iraq war and above its average for the last 12 months.
But the recovery in confidence since the end of major hostilities has fallen flat as the ongoing human and financial costs of the post-war occupation add up.
On September 7th, right in the middle of the survey period, US President George W. Bush requested $87 billion to fund operations in Iraq and Afghanistan.
"The difficulties currently being faced in Iraq are undermining consumer sentiment, with the $87 billion price tag causing additional concern," said Mr David Sloan, analyst at 4Cast Ltd.
Consumer confidence has also been hurt by the weak jobs market.