The final
reading for the September Reuters/Michigan index of consumer sentiment came in
at 70.1 compared to the flash reading of 69.0 and the August final reading of 67.9.
This was
the highest reading since April (77.2).
Economists
had predicted the indicator to be revised to 69.3.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions jumped by 3.3 per cent m-o-m to 63.3 this
month, while the index of consumer expectations climbed by 3.2 per cent m-o-m
to 74.4.
The report also
revealed that the year-ahead inflation expectations dropped from 2.8 per cent in August to 2.7 per cent in September,
in line with the preliminary estimates. This
was the lowest reading since December 2020 (2.5 per cent). Meanwhile,
the 5-year inflation expectations increased from 3.0 per cent in August
to 3.1 per cent, also matching the preliminary estimates. This represented the highest reading
since November 2023 (3.2 per cent).
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that sentiment appears to be building
some momentum as consumers’ expectations for the economy brighten. “At the same
time, many consumers continue to report that their expectations hinge on the
results of the upcoming election,” she added.