Consumer sentiment in the U.S. improved by less than previously estimated in the month of September, according to a report released by Thomson Reuters and the University of Michigan on Friday, although the consumer sentiment index was still at a four-month high.
The report showed that the consumer sentiment index for September was downwardly revised to 78.3 from the mid-month reading of 79.2. Economists had expected a more modest downward revision to a reading of 79.0.
Despite the downward revision, the index remains notably higher than the 74.3 recorded for August and is at its highest level since May.
The improvement compared to the previous month came as traders were more optimistic about the economic outlook, with the consumer expectations index jumping to 73.5 in September from 65.1 in August. The index was upwardly revised from the preliminary reading of 73.4.
On the other hand, the current economic conditions index for September was downwardly revised to 85.7 from the preliminary 88.3 and is now well below the 88.7 recorded for August.
The report also showed that one-year inflation expectations fell to 3.3 percent in September from 3.6 percent in August, while five-year inflation expectations dipped to 2.8 percent from 3.0 percent.
Peter Boockvar, managing director at Miller Tabak, said, "While moderated somewhat from the first look at UoM confidence, the final September figure follows the Conference Board improvement but is only a coincident snap shot indicator and not leading."
Tuesday morning, the Conference Board released a report showing a much bigger than expected improvement in U.S. consumer confidence in the month of September.
The Conference Board said its consumer confidence index jumped to 70.3 in September from a revised 61.3 in August. Economists had expected the index to climb to 64.8 from the 60.6 originally reported for the previous month.
The much bigger than expected increase lifted the consumer confidence index to its highest level since reaching 71.6 in February.
by RTT Staff Writer
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