Consumer sentiment in the U.S. rebounded by more than initially estimated in the month of September, according to a report released by the University of Michigan on Friday.
The report said the consumer sentiment index for September was upwardly revised to 93.2 from the preliminary reading of 92.0. Economists had expected the index to be unrevised.
With the unexpected upward revision, the consumer sentiment index showed a notable increase from a three-year low of 89.8 in August.
“Consumer sentiment continued to post small increases throughout September due to more favorable income trends, especially among middle income households,” said Surveys of Consumers chief economist Richard Curtin.
Curtin said the overall trends in consumer sentiment remain quite favorable but noted signs of a slow erosion amid rising levels of economic uncertainty.
“Trade policies have had the greatest negative impact on consumers, with a near record one-third of all consumers negatively mentioning trade policies in September when asked to explain in their own words the factors underlying their economic expectations,” Curtin said.
He added, “These and other policy concerns have so far been held in check by positive finances, although fewer consumers now anticipate higher wages or lower rates of unemployment in the year ahead.”
The rebound by the consumer sentiment index in September reflected improvements in both consumers’ assessments of current conditions and their expectations.
The current economic conditions index rose to 108.5 in September from 105.3 in August, while the index of consumer expectations climbed to 83.4 from 79.9.
With regard to inflation, the report said one-year inflation expectations ticked up to 2.8 percent in September from 2.7 percent in August, while five-year inflation expectations fell to 2.4 percent from 2.6 percent.
A separate report released by the Conference Board on Tuesday showed U.S. consumer confidence deteriorated by much more than anticipated in September after holding up relatively well in August.
The Conference Board said its consumer confidence index tumbled to 125.1 in September from a downwardly revised 134.2 in August.
Economists had expected the consumer confidence index to dip to 133.0 from the 135.1 originally reported for the previous month.
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