(RTTNews) - Consumer sentiment in the U.S. has improved by more than anticipated in the month of September, according to preliminary data released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment index rose to 69.0 in September from 67.9 in August, while economists had expected the index to inch up to 68.0.
"Sentiment is now about 40% above its June 2022 low, though consumers remain guarded as the looming election continues to generate substantial uncertainty," said Surveys of Consumers Director Joanne Hsu.
The bigger than expected increase by the headline index came as the current economic conditions index climbed to 62.9 in September from 61.3 in August and the index of consumer expectations crept up to 73.0 in September from 72.1 in August.
The report also showed a continued decrease by year-ahead inflation expectations, which fell for the fourth consecutive month.
Year-ahead inflation expectations edged down to 2.7 percent in September from 2.8 percent in August, hitting the lowest level since December 2020.
Meanwhile, long-run inflation expectations crept up to 3.1 percent in September from 3.0 percent in August, reaching the highest level since last November.
"Long-run inflation expectations remain modestly elevated relative to the range of readings seen in the two years pre-pandemic," said Hsu.
