(RTTNews) – A report released by the University of Michigan on Friday showed consumer sentiment in the United States improved more than expected in September.
The report says the consumer confidence index for September was revised up to 72.8 in September from a preliminary reading of 71.0.
Economists expected the Consumer Confidence Index to remain unchanged from the preliminary reading, which was still slightly above the nearly ten-year low of 70.3 reached in August.
“Consumer sentiment edged up slightly at the end of September, although the overall gain still meant a continuation of depressed optimism, initially sparked by the Delta variant and supported by persistent inflation and unfavorable long-term prospects for the domestic economy. “said the chief economist of Surveys of Consumers. Richard Curtin.
The report showed that the current economic conditions index reached 80.1 in September from 78.5 in August, while the consumer expectations index fell from 65.1 to 68.1.
On the inflation front, one-year inflation expectations remained unchanged at 4.6%, but five-year inflation expectations climbed to 3.0% in September from 2.9% in August .
“Consumers do not view economic conditions as conducive to establishing an inflationary psychology, a self-fulfilling prophecy,” Curtin said. “Instead, consumers favored the postponement because of what they still see as a transient price spike.”
He added: “While this reaction may well fade in the coming months, the shift to postponing purchases has been so significant that it could not be quickly reversed.
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