U.S. Consumer Sentiment Climbed to a Six-Month High in September

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© Reuters. U.S. Consumer Sentiment Climbed to a Six-Month High in

(Bloomberg) — U.S. consumer sentiment increased more than expected in early September to a six-month high as Americans grew more upbeat about the ’s prospects.

The University of Michigan’s preliminary sentiment index for September advanced to 78.9 from a final August reading of 74.1, according to data released Friday. The median from economists surveyed by Bloomberg was 75.

The measure of rose 4.8 points to 73.3, also a six-month high, while a gauge of current conditions increased 4.6 points to 87.5.

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Just 16% of respondents said they expected the economy to worsen in the year ahead, the smallest share since 2015 and consistent with an economy and labor that are slowly recovering. The gauge of sentiment, however, still remains below its pre-pandemic levels and Americans were less upbeat about the prospects for their finances.

The S&P 500 swung between gains and as searched for new catalysts to give direction to global markets. Treasuries were little changed and the dollar strengthened.

A separate report on Thursday showed that the labor market is gradually improving as the number of Americans applying for jobless benefits continued to decline.

Consumers were more sanguine about buying conditions for durable goods.

With the election approaching, Americans’ attitudes about the economy, job market and financial situations will play a role in which presidential candidate voters decide to support in November.

“Over the next several months, there are two factors that could cause volatile shifts and steep losses in consumer confidence: how the election is decided and the delays in obtaining vaccinations,” Richard Curtin, director of the survey, said in a statement.

The Michigan report also showed expectations declined slightly in September. Consumers anticipated inflation rising 2.7% in the year ahead, down from 3.1% in August, while longer term inflation expectations also fell.

The survey covered responses received through Sept. 14. The final report will be issued on Oct. 2.

©2020 Bloomberg L.P.

 

Source: Investing.com

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