US consumer sentiment ticks higher for second month but remains subdued
Americans’ outlook on the economy improved for the second straight month in September, bolstered by lower prices for long-lasting goods such as cars and furniture
WASHINGTON (AP) — Americans' outlook on the economy improved for the second straight month in September, bolstered by lower prices for long-lasting goods such as cars and furniture and the prospect of interest rate cuts by the Federal Reserve.
The University of Michigan's consumer sentiment index ticked up to 69 in its preliminary reading, its highest level since May and up from 67.9 in August. The gain was driven by consumers' perceptions that prices have improved for durable goods, the report from University of Michigan said.
The survey bottomed out in June 2022, when inflation peaked at 9.1%, and has since risen by about 40%, though it remains significantly below pre-pandemic levels. The long-term average for the index is nearly 85, according to Capital Economics.
“Consumers remain guarded as the looming election continues to generate substantial uncertainty,” said Joanne Hsu, director of consumer surveys at University of Michigan.
