WASHINGTON — 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.
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 survey bottomed out in June 2022, when inflation peaked at 9.1%, and has since risen by about 40%, though it remains signficantly below pre-pandemic levels.
“Consumers remain guarded as the looming election continues to generate substantial uncertainty,” said Joanne Hsu, director of consumer surveys at University of Michigan.
Hsu also said that, “a growing share of both Republicans and Democrats now anticipate a Harris win.” The survey was conducted before Tuesday’s debate. Consumer sentiment rose among Democrats, but ticked down slightly among independents and Republicans.
Rising consumer confidence can sometimes signal a greater willingness to spend, though Americans have largely continued to spend at a healthy pace even though their confidence, as measured in surveys, has been subdued.
The economy expanded at a solid 3% annual rate in the April-June quarter, and retail spending picked up in July. Yet Americans have been saving less and running up more credit card debt, which has raised concerns among some economists that consumers will soon have to cut back, potentially slowing growth.
