Ann Arbor, September 14 – U.S. consumer confidence improved in September 2024, reaching its highest level in four months, driven by falling inflation. However, despite the rise, Americans remain cautious ahead of the November presidential elections, according to preliminary results from a University of Michigan survey reported by Reuters.
Consumer Confidence Index Surges
The consumer confidence index increased to 69 points in September, up from 67.9 points in August. Economists had expected a slightly lower increase to 68.5 points. This month’s reading is the highest since May 2024.
| Month | Consumer Confidence Index |
|---|---|
| August | 67.9 |
| September | 69 |
Key Factors Behind the Rise
The increase in confidence was attributed to improving purchasing conditions and lower prices. Expectations about personal finances and the overall economy also improved, despite a slight weakening in perceptions of the labor market, said Joanne Hsu, Director of Consumer Surveys at the University of Michigan.
The sub-index for current economic conditions rose to 62.9 points from 61.3 points in August, while the expectations index climbed to 73 points, up from 72.1 points. Both indices surpassed forecasts, which predicted 61.5 and 71 points, respectively.
| Sub-Index | August | September | Forecast |
|---|---|---|---|
| Current Economic Conditions | 61.3 | 62.9 | 61.5 |
| Expectations Index | 72.1 | 73 | 71 |
Inflation Expectations
At the same time, annual inflation expectations declined for the fourth consecutive month, falling to 2.7% from 2.8% in August, marking the lowest level since December 2020. However, five-year inflation expectations increased slightly to 3.1%, up from 3% the previous month, the highest since November of last year.
| Inflation Expectations | August | September |
|---|---|---|
| One-year | 2.8% | 2.7% |
| Five-year | 3% | 3.1% |
Looking Forward
With consumer confidence improving and inflation expectations stabilizing, Americans are cautiously optimistic about the economic outlook. However, the upcoming presidential elections add an element of uncertainty to the overall sentiment.
Key Keywords: U.S. consumer confidence, University of Michigan survey, inflation expectations, personal finance expectations, labor market perceptions, current economic conditions, September consumer confidence index
