The University of Michigan released revised data on Friday, indicating a more substantial improvement in U.S. consumer sentiment for September than initially estimated.
The university's consumer sentiment index for September was updated to 70.1, surpassing the preliminary figure of 69.0. Economists had predicted a smaller adjustment to 69.3.
This significant upward revision positions the consumer sentiment index well above August's final reading of 67.9.
The report also highlighted an increase in the current economic conditions index, which rose to 63.3 in September from 61.3 in August. Additionally, the index of consumer expectations improved to 74.4 in September from 72.1 in the previous month.
"Sentiment appears to be gaining momentum as consumers' economic outlook becomes more optimistic," stated Joanne Hsu, Director of Surveys of Consumers. "Nonetheless, many consumers continue to base their expectations on the forthcoming election outcomes."
Hsu further noted, "Compared to August, a growing number of consumers across political affiliations anticipate a Harris presidency, although about two-thirds of Republicans still believe Trump will win."
Regarding inflation, year-ahead inflation expectations dropped slightly to 2.7 percent in September from 2.8 percent in August, marking the lowest level since December 2020.
Conversely, long-term inflation expectations inched up to 3.1 percent in September from 3.0 percent in August, reaching the highest level since November last year.
