U.S. Consumer Sentiment Increased Slightly in September as Inflation Expectations Moderated

[mahatmakanejeeves]

U.S. Consumer Sentiment Increased Slightly in September as Inflation Expectations Moderated

Sept. 30, 2022 at 10:17 a.m. ET

By Xavier Fontdegloria

U.S. consumer sentiment edged up in September to its highest level in five months as the decline in energy prices lead to easing inflation expectations.

The final estimate of the consumer sentiment index published Friday by the University of Michigan increased to 58.6 in September from 58.2 in August. However, the index fell compared with the mid-month preliminary reading of 59.5. ... Economists polled by The Wall Street Journal expected consumer sentiment to be unchanged from the preliminary estimate.

Buying conditions for durable goods and the one-year economic outlook continued to recover from the extremely low readings earlier in the summer, but these gains were largely offset by modest declines in the long-run outlook for business conditions, said Joanne Hsu, the survey's director.

Despite the recent improvements in the index, confidence among U.S. consumers remains at historically subdued levels amid concerns over inflation and an economic slowdown. U.S. inflation eased slightly to 8.3% in August from 8.5% in July.

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Uncertainty clouds consumers’ outlook on the economy

Published On:
September 30, 2022
Contact:
Morgan Sherburne

Consumer sentiment was essentially unchanged in September, just 0.4 index points above August, according to the University of Michigan Surveys of Consumers.

The one-year economic outlook continued lifting from the extremely low readings earlier in the summer, but these gains were largely offset by modest declines in the long-run outlook, said U-M economist Joanne Hsu, director of the surveys.

Personal finance components of the index and buying conditions for durables remained at similar, relatively low levels from last month. Following the notable improvement in August, sentiment remained low by historic standards as consumers continued to voice concerns about inflation.

“Consumers welcomed the slowdown in inflation last month, but they show signs of uncertainty over the trajectory of the economy,” Hsu said. “Developments overseas generate downside risks. The continued war in Ukraine, the prospect of higher energy costs in Europe and climate disasters all have the potential to exacerbate inflation in the U.S., and consumers will quickly notice any pass-through to rising prices.”

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[bucolic_frolic]

1. Consumers are gobbling up whatever is cheap. Products disappear if undervalued.

This will continue for 2-3 years.