U.S. Consumer Sentiment Brightens in September; Inflation Expectations Mixed

Consumer Sentiment Improves, Inflation Expectations Mixed

The University of Michigan's preliminary Consumer Sentiment Index rose to 59.5 in September, up from 58.2 in August. This increase suggests that consumers are feeling more optimistic about the economy, despite ongoing concerns about inflation.

The Expectations Index, which measures consumers' outlook for the next six months, rose to 63.3 from 61.7. This increase indicates that consumers are more confident about the future direction of the economy.

However, the Current Conditions Index, which measures consumers' assessment of the current economic climate, fell to 56.7 from 58.4. This decline suggests that consumers are still concerned about the current state of the economy.

Inflation Expectations Mixed

The survey also found that consumers' inflation expectations were mixed. The median expected inflation rate for the next year rose to 5.0% from 4.8% in August. This increase suggests that consumers are becoming more concerned about future inflation.

However, the median expected inflation rate for the next five years fell to 3.0% from 3.1% in August. This decline suggests that consumers believe that inflation will moderate in the long run.

Conclusion

The University of Michigan's preliminary Consumer Sentiment Index rose to 59.5 in September, up from 58.2 in August. This increase suggests that consumers are feeling more optimistic about the economy, despite ongoing concerns about inflation.

Inflation expectations were mixed, with the median expected inflation rate for the next year rising to 5.0% from 4.8% in August, while the median expected inflation rate for the next five years fell to 3.0% from 3.1% in August.

The mixed inflation expectations suggest that consumers are uncertain about the future direction of inflation. However, the overall increase in Consumer Sentiment suggests that consumers are becoming more optimistic about the economy.