University of Michigan Reports the Final Results of Its Consumer Sentiment Index for September

On Friday, the University of Michigan released the final results of its Surveys of Consumers for September.

• The Index of Consumer Sentiment rose to a reading of 70.1 in September, up from 67.9 in August. This is a month-over-month increase of 3.2% and up 3.4% year-over-year (67.8 in September 2023).
• Current Economic Conditions rose to a reading of 63.3 in September, up from 61.3 in August. This is a month-over-month increase of 3.3% but down 11.0% year-over-year (71.1 in September 2023).
• The Index of Consumer Expectations increased to a reading of 74.4 in September, up from 72.1 in August. This is a month-over-month increase of 3.2% and up 13.2% year-over-year (65.7 in September 2023).

In remarks accompanying the report, Surveys of Consumers Director Joanne Hsu said,

“Consumer sentiment extended its early-month climb, ultimately rising more than 3% above August. This increase was seen across all education groups and political affiliations. Furthermore, all five index components gained, led by a 6% surge in one-year business expectations. The expectations index is now 13% above a year ago and reflects greater optimism across a broad swath of the population. While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow. Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election. Relative to August, consumers across political parties are increasingly expecting a Harris presidency, though about two-thirds of Republicans still expect Trump to win.”