The numbers: The second and final reading of the University of Michigan’s consumer-sentiment index in September rose to 70.1 — the highest level in five months — from a preliminary reading of 69 released earlier in the month, the university said Friday.
Economists polled by the Wall Street Journal expected a final reading of 69.3.
Sentiment is up by more than 3% from August.
The index still stands well below a prepandemic high of 101, reached in February 2020.
Americans think inflation will average 2.7% in the next year. That’s the lowest level since 2020, according to Capital Economics. The current rate of inflation is 2.5%, based on the consumer-price index.
Over the next five years, consumers expect inflation to average 3.1%, up from an expectation of 3% in August.
Key details: A gauge that measures what consumers think about the current state of the economy was at 63.3 in September, up from 61.3 in the prior month.
A measurement of expectations for the next six months was somewhat stronger at 74.4, up from 72.1 in August.
What UMich said: “Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten,” said Joanne Hsu, director of the University of Michigan survey.
At the same time, consumers also report that their expectations hinge on the result of the upcoming election.
