Consumer sentiment in the United States saw a marked improvement in September 2024, reaching its highest level in five months.

According to multiple reports, optimism surrounding the economy has continued to rise, driven by the Federal Reserve’s decision to cut interest rates and a steady decline in inflation.

Consumer sentiment rose 3.2% to 70.1 in September, according to final results from the University of Michigan Survey of Consumers.

This represents a 3.4% increase year over year.

“Consumer sentiment extended its early-month climb, ultimately rising more than 3% above August,” according to Survey of Consumers chief Joanne Hsu. “This increase was seen across all education groups and political affiliations. Furthermore, all five index components gained, led by a 6% surge in one-year business expectations. The expectations index is now 13% above a year ago and reflects greater optimism across a broad swath of the population. While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow. Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.”

Source:  marketbusinessnews.com