A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by more than previously estimated in the month of September.
The report said the consumer sentiment index for September was upwardly revised to 72.8 in September from a preliminary reading of 71.0.
Economists had expected the consumer sentiment index to be unrevised from the preliminary reading, which was still slightly higher than the nearly ten-year low of 70.3 hit in August.
“Consumer sentiment edged upward in late September, although the overall gain still meant the continuation of depressed optimism, initially sparked by the Delta variant and supported by persistent inflation and unfavorable long-term prospects for the national economy,” said Surveys of Consumers chief economist Richard Curtin.
The report showed the current economic conditions index edged up to 80.1 in September from 78.5 in August, while index of consumer expectations rose to 68.1 from 65.1.
On the inflation front, one-year inflation expectations were unchanged at 4.6 percent, but five-year inflation expectations crept up to 3.0 percent in September from 2.9 percent in August.
“Consumers do not view economic conditions as conducive to establishing an inflationary psychology, a self-fulfilling prophecy,” Curtin said. “Instead, consumers have favored postponement due to what they still consider a transient spike in prices.”
He added, “While this reaction may well fade in the months ahead, the shift toward postponement of purchases has been so significant that it could not be quickly reversed.