A report from
the University of Michigan revealed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment rose 1.8 per cent m-o-m to 69.0
in early September. This marked the
highest reading in four months.
Economists had forecast
the indicator would come in at 68.0 this
month, slightly up
from the August final reading of 67.9.
According to
the report, the index of current economic conditions jumped 2.6 per cent m-o-m to 62.9 in September, while the
index of consumer expectations climbed 1.2 per cent m-o-m to 73.0.
The report also
showed that the estimates of year-ahead expected inflation slipped from 2.8 per
cent in August to 2.7 per cent
early this month, the lowest level since December 2020 (2.5 per cent). Meanwhile, the 5-year expected inflation increased from 3.0 per cent to 3.1 per
cent, the highest level since November 2023 (3.2 per cent).
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted that the
U.S. consumer sentiment rose to its highest reading since May 2024, driven by
an improvement in buying conditions for durables amid more favourable prices as
perceived by consumers. “Year-ahead expectations for personal finances and the
economy both improved as well, despite a modest weakening in views of labour
markets,” she added.