Consumer Sentiment Rises 1.6% to 69 in Early September

Ann Arbor, MI, September 13, 2024-Consumer sentiment rose 1.6% to 69.0 in early September, according to preliminary results from the University of Michigan Survey of Consumers. 

This represents a 1.8% increase year over year.

“Consumer sentiment rose to its highest reading since May 2024, increasing for the second consecutive month and lifting about 2% above August,” said Survey director Joanna Hsu. “The gain was led by an improvement in buying conditions for durables, driven by more favorable prices as perceived by consumers. Year-ahead expectations for personal finances and the economy both improved as well, despite a modest weakening in views of labor markets. 

“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.

“Year-ahead inflation expectations fell for the fourth straight month, coming in at 2.7%. The current reading is the lowest since December 2020 and is well within the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations were little changed, edging up from 3.0% last month to 3.1% this month. Long-run inflation expectations remain modestly elevated relative to the range of readings seen in the two years pre-pandemic.”