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U.S. Consumer Sentiment Reaches 4-Month High Amid Easing Inflation
September 13, 2024
Consumer sentiment in the U.S. improved more than expected in September, but Americans remain cautious ahead of the November election, according to the latest reading of the University of Michigan’s consumer sentiment index.
The survey showed that Americans’ attitudes toward the economy made a marked improvement this month, jumping 2% from August. The overall consumer sentiment index rose to 69.0 this month, up from 67.9 in August and ahead of the 68.5 that economists polled by Reuters had expected.
The September reading marks the first increase after a monthslong streak of consumer sentiment holding steady at depressed levels. The gain was led by improving sentiment around buying conditions for durable goods which was driven by more favorable prices as perceived by consumers.
Consumer sentiment is now 40% higher than the record-low it reached in June 2022 when inflation was surging, but it remains below pre-pandemic levels.
The survey also noted that “a growing share of both Republicans and Democrats now anticipate a Harris victory” in November, and Americans have divergent views of the implications that will have for the economy, driving the partisan gap in sentiment higher.
Consumers’ outlook on inflation also continued to improve, with one-year inflation expectations falling for the fourth consecutive month, down to 2.7%. That is the lowest reading since December 2020.
