US consumer sentiment highest since May

US consumer sentiment improved in September to its highest level since May, according to a preliminary survey released on Friday.
The University of Michigan's consumer sentiment index came in at 69.0, up from 67.9 a month earlier and 67.8 in September 2023.

The index for current economic conditions printed at 62.9 in September, up from 61.3 in August but down from 71.1 in the same month a year ago.

Finally, the index of consumer expectations was 73.0 this month, versus 72.1 in August and 65.7 in September last year.

Surveys of consumers director Joanne Hsu said: "Sentiment is now about 40% above its June 2022 low, though consumers remain guarded as the looming election continues to generate substantial uncertainty.

"A growing share of both Republicans and Democrats now anticipate a Harris win. Consistent with their divergent views of the implications of a Harris presidency for the economy, partisan gaps in sentiment inched up.

"Note that interviews for this release concluded prior to Tuesday's debate; a more comprehensive look at election expectations will be released next week."

Thomas Ryan, North America economist at Capital Economics, said: "Despite the small rise in the University of Michigan consumer sentiment index in September, consumer confidence remains in a slump.

"At face value, weak sentiment points to softer consumer spending, but confidence has not been an accurate gauge of consumption growth for some time now, so we would take it with a pinch of salt."