US consumer sentiment rises in September as inflation eases

US CONSUMER sentiment improved in September amid subsiding inflation, though Americans remained cautious ahead of the November presidential election, a survey showed on Friday (Sep 13).

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 69 this month, compared to a final reading of 67.9 in August. Economists polled by Reuters had forecast a preliminary reading of 68.5.

“A growing share of both Republicans and Democrats now anticipate a Harris win,” said Surveys of Consumers director Joanne Hsu. “Consistent with their divergent views of the implications of a Harris presidency for the economy, partisan gaps in sentiment inched up.”

The survey was conducted before Tuesday’s debate, where Republican candidate Donald Trump squared off against Vice-President Kamala Harris, the Democratic Party’s nominee for the Nov 5 election.

The survey’s reading of one-year inflation expectations fell for the fourth straight month to 2.7 per cent. That was the lowest reading since December 2020 and compared to 2.8 per cent in August.

Its five-year inflation outlook edged up to 3.1 per cent from 3 per cent in the prior month. REUTERS