Consumer sentiment in US reaches highest level in 4 months
Date
9/15/2024 7:54:38 AM
(MENAFN) In September 2024, US consumer sentiment experienced a notable increase, reaching its highest level since May of this year. The preliminary results from the University of Michigan's consumer survey, released on Friday, revealed that the consumer sentiment index rose by 1.1 points, climbing from 67.9 in August to 69.0 in September. This rise in sentiment exceeded market expectations, which had anticipated the index to be at 68.3.
The improvement in consumer sentiment was largely attributed to more favorable conditions for purchasing durable goods. Consumers perceived better pricing for these items, which contributed significantly to the overall increase in sentiment. Additionally, there was a positive shift in expectations regarding personal finances and the broader economy over the coming year. However, there was a slight decline in views on the labor market, reflecting a more cautious outlook in that area.
Joanne Hsu, the Director of Surveys of Consumers, noted that both Republicans and Democrats are increasingly expecting Vice President Kamala Harris to secure a victory in the upcoming November election. This shift in political expectations may also be influencing consumer sentiment and perceptions of economic stability.
On the inflation front, expectations for the year ahead have continued to decrease, falling to 2.7 percent in September. This marks the fourth consecutive month of decline and represents the lowest level of inflation expectations since December 2020. This reduction in inflation expectations could further contribute to the overall positive sentiment among consumers.
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