Revised data 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 University of Michigan said its consumer sentiment index for September was upwardly revised to 70.1 from a preliminary reading of 69.0. Economists had expected a more modest upward revision to 69.3.
With the bigger than expected upward revision, the consumer sentiment index is well above the final August reading of 67.9.
The report also said the current economic conditions index rose to 63.3 in September from 61.3 in August, while the index of consumer expectations climbed to 74.4 in September from 72.1 in August.
Sentiment appears to be building some momentum as consumers expectations for the economy brighten, said Surveys of Consumers Director Joanne Hsu. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.
She added, Relative to August, consumers across political parties are increasingly expecting a Harris presidency, though about two-thirds of Republicans still expect Trump to win.
With regard to inflation, year-ahead inflation expectations edged down to 2.7 percent in September from 2.8 percent in August, hitting the lowest level since December 2020.
Meanwhile, long-run inflation expectations crept up to 3.1 percent in September from 3.0 percent in August, reaching the highest level since last November.