Consumer sentiment rises for third consecutive month

Article originally posted on HERE on September 27, 2024

The mood of American consumers continues to brighten.

Consumer sentiment extended its early-month climb, rising 3.2% in September to 70.1, according to the University of Michigan’s Index of Consumer Sentiment. It’s the highest level in five months.

“The expectations index is now 13% above a year ago and reflects greater optimism across a broad swath of the population,” said Joanne Hsu, surveys of consumers director. “While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow.”

In other University of Michigan results, the measure of consumer expectations for the next six months rose 3.2% in September to 74.4  from 72.1 in August. The measure of current economic conditions also improved, rising 3.3% in September to 63.3.

“Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten,” said Hsu. “At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.”

Relative to August, consumers across political parties are increasingly expecting a Kamala Harris presidency, though about two-thirds of Republicans still expect Donald Trump to win, she noted.