Investing.com – U.S. consumer sentiment improved in September to its second highest level in 14 years, according to a report published on Friday.
The preliminary publication of the data for August from the University of Michigan's Consumer Survey Center showed that consumer sentiment increased to 100.8 from 96.2 a month earlier.
That was the second highest level since 2004, only behind the March 2018 reading of 101.4.
Analysts had forecast a rise to 96.7.
The current conditions indicator rose to 116.1 in September, from the previous 110.3.
Additionally, consumer expectations improved to 91.1 from the prior 87.1.
Meanwhile, inflation expectations for the next 12 months decreased to 2.8% from 3.0%, while the five-year gauge fell to 2.4% from the previous 2.6%.
The surveyor’s chief economist Richard Curtin indicated that the gains were widespread across all major socioeconomic subgroups and noted that expectations hit their highest level since July 2004, largely due to more favorable prospects for jobs and incomes.
“Consumers anticipated continued growth in the economy that would produce more jobs and an even lower unemployment rate during the year ahead,” Curtin said.
This economist highlighted, however, that the largest problem cited on the economic horizon involved the anticipated negative impact from tariffs.
“Concerns about the negative impact of tariffs on the domestic economy were spontaneously mentioned by nearly one-third of all consumers in the past three months, up from one-in-five in the prior four months,” he explained.